Why do NATO and the World Trade Organization involve shared or divided sovereignty?

The involvement of organizations like the North Atlantic Treaty Organization (NATO) and the World Trade Organization (WTO) in shared or divided sovereignty stems from the recognition that maintaining peace and prosperity in an interdependent world requires limitations on absolute, unlimited state power.1

Because there can be no effective law without some restriction on sovereignty, states choose to "pool" their sovereignty within these organizations to achieve collective goals. This practice, known as divided sovereignty, allows authority to be exercised not only by national governments but also by international bodies.1

• NATO: Member states commit to collective security, as seen in Article 5, where an attack on one is considered an attack on all. By agreeing to act in concert to restore security, members limit their individual freedom of action in favor of a collective defense framework.21
• WTO: Member states accept multilateral trade rules and dispute resolution processes, which inherently constrain a nation's ability to act unilaterally in economic policy. While some critics argue this infringes upon national sovereignty, supporters view it as a necessary trade-off for the benefits of global economic integration.13