👉 The World Trade Organization (WTO) uses mathematical models extensively to analyze and predict the impacts of trade policies, tariffs, and agreements on global trade flows and economic welfare. These models often incorporate econometric techniques to estimate the effects of changes in trade barriers, quotas, and subsidies on import and export volumes, prices, and overall economic growth. For instance, the gravity model, a widely used quantitative approach, predicts trade between countries based on their economic sizes and distances. Additionally, the WTO employs game theory to understand strategic interactions among member countries in negotiations and disputes, helping to forecast outcomes and optimize strategies. These mathematical tools provide a rigorous framework for assessing the benefits and drawbacks of trade liberalization, ensuring that policies are evidence-based and economically sound.
