The World Trade Organization: Promoting Free Trade

Description: The World Trade Organization (WTO) is an intergovernmental organization that regulates international trade. The WTO's main function is to ensure that trade flows as smoothly, predictably, and freely as possible.
Number of Questions: 15
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Tags: wto international trade free trade trade policy
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What is the primary objective of the World Trade Organization (WTO)?

  1. To promote free trade among its member countries

  2. To regulate international trade and resolve trade disputes

  3. To provide financial assistance to developing countries

  4. To negotiate trade agreements between countries


Correct Option: A
Explanation:

The WTO's main goal is to promote free trade by reducing trade barriers and ensuring that trade flows smoothly and predictably.

When was the WTO established?

  1. 1947

  2. 1995

  3. 1967

  4. 1986


Correct Option: B
Explanation:

The WTO was established on January 1, 1995, as the successor to the General Agreement on Tariffs and Trade (GATT).

How many member countries does the WTO have?

  1. 164

  2. 193

  3. 206

  4. 234


Correct Option: A
Explanation:

As of 2023, the WTO has 164 member countries.

What is the highest decision-making body of the WTO?

  1. The Ministerial Conference

  2. The General Council

  3. The Dispute Settlement Body

  4. The Secretariat


Correct Option: A
Explanation:

The Ministerial Conference is the highest decision-making body of the WTO and meets at least once every two years.

What is the function of the General Council of the WTO?

  1. To oversee the day-to-day operations of the WTO

  2. To resolve trade disputes

  3. To negotiate trade agreements

  4. To provide technical assistance to developing countries


Correct Option: A
Explanation:

The General Council is responsible for overseeing the day-to-day operations of the WTO and implementing the decisions of the Ministerial Conference.

What is the Dispute Settlement Body (DSB) of the WTO?

  1. A body that resolves trade disputes between WTO members

  2. A body that negotiates trade agreements

  3. A body that provides technical assistance to developing countries

  4. A body that oversees the day-to-day operations of the WTO


Correct Option: A
Explanation:

The Dispute Settlement Body (DSB) is responsible for resolving trade disputes between WTO members.

What is the most-favored-nation (MFN) principle in international trade?

  1. A principle that requires countries to treat all other WTO members equally in terms of trade

  2. A principle that allows countries to discriminate against certain trading partners

  3. A principle that allows countries to impose tariffs on imports

  4. A principle that allows countries to provide subsidies to their exporters


Correct Option: A
Explanation:

The most-favored-nation (MFN) principle requires countries to treat all other WTO members equally in terms of trade, meaning that they cannot discriminate against any particular country.

What is the purpose of the Trade Policy Review Mechanism (TPRM) of the WTO?

  1. To review the trade policies of WTO members and make recommendations for improvement

  2. To resolve trade disputes between WTO members

  3. To negotiate trade agreements

  4. To provide technical assistance to developing countries


Correct Option: A
Explanation:

The Trade Policy Review Mechanism (TPRM) is a process through which the WTO reviews the trade policies of its members and makes recommendations for improvement.

What is the function of the Secretariat of the WTO?

  1. To provide administrative and technical support to the WTO

  2. To resolve trade disputes

  3. To negotiate trade agreements

  4. To provide financial assistance to developing countries


Correct Option: A
Explanation:

The Secretariat of the WTO provides administrative and technical support to the organization, including organizing meetings, preparing reports, and providing information to members.

What is the Doha Development Agenda (DDA) of the WTO?

  1. A round of trade negotiations launched in 2001 aimed at promoting development and reducing poverty

  2. A body that resolves trade disputes between WTO members

  3. A body that negotiates trade agreements

  4. A body that provides technical assistance to developing countries


Correct Option: A
Explanation:

The Doha Development Agenda (DDA) is a round of trade negotiations launched in 2001 aimed at promoting development and reducing poverty.

What is the Bali Package of the WTO?

  1. A package of trade agreements reached in 2013 that included measures to reduce trade costs and boost economic growth

  2. A body that resolves trade disputes between WTO members

  3. A body that negotiates trade agreements

  4. A body that provides technical assistance to developing countries


Correct Option: A
Explanation:

The Bali Package is a package of trade agreements reached in 2013 that included measures to reduce trade costs and boost economic growth.

What is the Trade Facilitation Agreement (TFA) of the WTO?

  1. An agreement that aims to reduce trade costs and improve the efficiency of customs procedures

  2. A body that resolves trade disputes between WTO members

  3. A body that negotiates trade agreements

  4. A body that provides technical assistance to developing countries


Correct Option: A
Explanation:

The Trade Facilitation Agreement (TFA) is an agreement that aims to reduce trade costs and improve the efficiency of customs procedures.

What is the role of the World Bank in international trade?

  1. To provide financial assistance to developing countries for trade-related projects

  2. To resolve trade disputes between countries

  3. To negotiate trade agreements

  4. To provide technical assistance to developing countries in trade policy


Correct Option: A
Explanation:

The World Bank provides financial assistance to developing countries for trade-related projects, such as infrastructure development and trade policy reforms.

What is the role of the International Monetary Fund (IMF) in international trade?

  1. To provide financial assistance to countries facing balance of payments problems

  2. To resolve trade disputes between countries

  3. To negotiate trade agreements

  4. To provide technical assistance to developing countries in trade policy


Correct Option: A
Explanation:

The IMF provides financial assistance to countries facing balance of payments problems, which can help to stabilize their economies and promote trade.

What are the main challenges facing the WTO today?

  1. The rise of protectionism and trade wars

  2. The lack of progress in the Doha Development Agenda negotiations

  3. The increasing complexity of global supply chains

  4. All of the above


Correct Option: D
Explanation:

The WTO faces a number of challenges today, including the rise of protectionism and trade wars, the lack of progress in the Doha Development Agenda negotiations, and the increasing complexity of global supply chains.

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