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World Trade Organization (WTO) MCQs
The World Trade Organization (WTO) is an intergovernmental association that directs and works with a global exchange between countries. States utilize the association to set up, re-examine, and uphold the guidelines that oversee the worldwide exchange. It authoritatively started procedure on 1 January 1995, compliant with the 1994 Marrakesh Agreement, accordingly supplanting the General Agreement on Tariffs and Trade (GATT) that had been set up in 1948. The WTO is the world's biggest worldwide monetary association, with 164 part states addressing more than 98% of worldwide exchange and worldwide GDP. The WTO is settled in Geneva, Switzerland. Its top dynamic body is the Ministerial Conference, which is made out of all parts states and ordinarily gathers biennially; the agreement is underlined in all choices. Everyday capacities are dealt with by the General Council, comprised of delegates from all individuals. A Secretariat of the north of 600 staff, driven by the Director-General and four representatives, gives managerial, expert, and specialized administrations. The WTO's yearly spending plan is around 220 million USD, which is contributed by individuals given their extent of global exchange.
World Trade Organization MCQs: This section contains multiple-choice questions and answers on World Trade Organization. It will help the students to prepare well for their exams.
List of World Trade Organization (WTO) MCQs
1. What is the full form of WTO?
- World Tariff Organization
- World Tax Organization
- World Trade Organization
- World Trademark Organization
Answer: C) World Trade Organization
Explanation:
WTO stands for World Trade Organization which is settled in Geneva, Switzerland.
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2. What is GATT?
- A pact eliminating most trade barriers between the U.S., Canada, and Mexico
- Political and economic union
- Regional intergovernmental organization
- A legal agreement between many countries
Answer: D) A legal agreement between many countries
Explanation:
The General Agreement on Tariffs and Trade (GATT), endorsed on October 30, 1947, by 23 nations, was a legitimate arrangement limiting obstructions to global exchange by taking out or lessening standards, duties, and endowments while protecting huge guidelines. The GATT was planned to help monetary recuperation after World War II through reproducing and changing worldwide exchange.
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3. What is European Union?
- A pact eliminating most trade barriers between the U.S., Canada, and Mexico
- Political and economic union
- Regional intergovernmental organization
- A legal agreement between many countries
Answer: B) Political and economic union
Explanation:
The European Union (EU) is a gathering of 27 nations that works as a durable financial and political square. Nineteen of the nation’s utilize the euro as their authority cash. The EU's total national output (GDP) added up to $15.6 trillion (ostensible) in 2019, which was $5.8 trillion not exactly the United States' $21.4 trillion GDP, as per figures accessible from the World Bank.
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4. What is South Asian Association for Regional Cooperation?
- A pact eliminating most trade barriers between the U.S., Canada, and Mexico
- Political and economic union
- Regional intergovernmental organization
- A legal agreement between many countries
Answer: C) Regional intergovernmental organization
Explanation:
The South Asian Association for Regional Cooperation, or SAARC, is a financial and international association that was set up to advance financial turn of events, strength, and government assistance financial matters, and aggregate independence inside its part countries. Established during a culmination in 1985, SAARC's underlying individuals incorporate Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. Because of quick development inside the district, Afghanistan got full-part status and nations are viewed as eyewitnesses. SAARC regards the standards of sovereign equity, regional honesty, and public autonomy as it endeavours to accomplish maintainable financial development.
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5. What is North American Free Trade Agreement?
- A pact eliminating most trade barriers between the U.S., Canada, and Mexico
- Political and economic union
- Regional intergovernmental organization
- A legal agreement between many countries
Answer: A) A pact eliminating most trade barriers between the U.S., Canada, and Mexico
Explanation:
The North American Free Trade Agreement (NAFTA) was a settlement disposing of most exchange obstructions between the U.S., Canada, and Mexico that became real on Jan. 1, 1993. A portion of its arrangements was executed promptly, while others were stumbled over the 15 years that followed.
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6. Which organisation is the forerunner of the World Trade Organization?
- South Asian Association for Regional Cooperation
- North American Free Trade Agreement
- European Union
- General Agreement on Tariffs and Trade
Answer: D) General Agreement on Tariffs and Trade
Explanation:
The WTO forerunner General Agreement on Tariffs and Trade (GATT), was set up by a multilateral arrangement of 23 nations in 1947 after World War II following other new multilateral organizations committed to worldwide financial collaboration like the World Bank (established 1944) and the International Monetary Fund (established 1944 or 1945). An equivalent global foundation for exchange named the International Trade Organization never began as the U.S. furthermore different signatories didn't sanction the foundation treaty, and so GATT gradually turned into an accepted worldwide association.
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7. In which year was World Trade Organization established?
- 27th July 2007
- 1st January 1995
- 15th September 1993
- 1st January 1947
Answer: B) 1st January 1995
Explanation:
The World Trade Organization (WTO) is an intergovernmental association that controls and works with a worldwide exchange between countries. Legislatures utilize the association to build up, amend, and uphold the guidelines that administer worldwide exchange. It authoritatively started procedure on 1 January 1995, following the 1994 Marrakesh Agreement, in this way supplanting the General Agreement on Tariffs and Trade (GATT) that had been set up in 1948.
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8. At the establishment of the World Trade Organization, how many countries were its member?
- 164
- 151
- 104
- 139
Answer: C) 104
Explanation:
The World Trade Organization appeared on 1 January 1995. There were 76 Members all along, and 36 extra Members will have joined by 13 December 1995, carrying the all out to 112.
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9. How many observer governments does World Trade Organization have?
- 11
- 104
- 22
- 25
Answer: D) 25
Explanation:
Observer status in the General Council conveys with it certain freedoms and commitments. Eyewitness states reserve the option to notice formal gatherings of the General Council and its auxiliary bodies, including increased Working Parties (except for the Committee on Budget, Finance and Administration).
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10. Which country is the newest member of the World Trade Organization?
- Pakistan
- Afghanistan
- India
- Islamabad
Answer: B) Afghanistan
Explanation:
Afghanistan is the most up to date part, joining compelling 29 July 2016. Russia was one of the main two enormous economies outside of the WTO after Saudi Arabia joined in 2005. It had started haggling to join the WTO's ancestor in 1993.
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11. Where is the headquarters of the World Trade Organization situated?
- India
- Geneva
- New York
- Tokyo
Answer: B) Geneva
Explanation:
Geneva, Switzerland, where the World Trade Organization is headquartered, is a novel spot, with many United Nations and other worldwide associations, just as missions to the WTO. The Center William Rappard (CWR) is the name of the structure that has been home to the WTO Secretariat since the WTO was set up in 1995.
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12. What is the objective of the World Trade Organization?
- Improvising the Payment Situation among countries.
- To protect the environment
- Increase the trading capacity
- Widen the principle of free trade to the service sector and agriculture sector
Answer: D) Widen the principle of free trade to the service sector and agriculture sector
Explanation:
Deregulation is an exchange strategy that doesn't confine imports or products. It can likewise be perceived as the unregulated economy thought applied to worldwide exchange. In government, deregulation is prevalently upheld by ideological groups that stand firm on monetary liberal situations, while financial patriots and left-wing ideological groups for the most part support protectionism, something contrary to streamlined commerce.
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13. In which city was the 10th Ministerial Conference of the World Trade Organization held?
- Tokyo
- Geneva
- Nairobi
- New York
Answer: C) Nairobi
Explanation:
The WTO's tenth Ministerial Conference was held in Nairobi, Kenya, from 15 to 19 December 2015. It finished in the reception of the "Nairobi Package", a progression of six Ministerial Decisions on agribusiness, cotton and issues connected with least-created nations (LDCs).
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14. When did General Agreement on Tariffs and Trade replace the World Trade Organization?
- 1947
- 1995
- 1987
- 1992
Answer: B) 1995
Explanation:
On 1 January 1995, the World Trade Organization supplanted General Agreement on Tariffs and Trade, which had been in presence starting around 1947, as the association regulating the multilateral exchanging framework. The states that had marked GATT were formally known as "General Agreement on Tariffs and Trade contracting parties".
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15. Which Agreement was signed by the United States of America, Canada and Mexico for removing the trade barriers?
- General Agreement on Tariffs and Trade
- North American Free Trade Agreement
- Southeast Asia Treaty Organization
- Central Treaty Organization
Answer: B) North American Free Trade Agreement
Explanation:
The North American Free Trade Agreement (NAFTA) is a peaceful accord endorsed by the legislatures of Canada, Mexico, and the United States, making a three-sided exchange coalition in North America. The arrangement came into power on January 1, 1994. The objective of NAFTA is to kill all levies and non-duty hindrances of exchange and speculation between the United States, Canada and Mexico.
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16. The United States of America blocked which countries from shrimp exports?
- China, America, Britain
- Europe, Africa, China, Netherland
- Japan, Spain, Russia
- Indonesia, Malaysia, Thailand, Pakistan
Answer: D) Indonesia, Malaysia, Thailand, Pakistan
Explanation:
Malaysia, Pakistan and Thailand which didn't consent to the US necessities what's more consequently were not allowed import authentications started conventional debate settlement procedures before the WTO. They guaranteed that the US disregarded Art.
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17. Which of the following is not related to World Trade Organization?
- Dispute Settlement Body
- Council of Trade in goods
- Trade Policy Review Body
- Exchange Rate Management Body
Answer: D) Exchange Rate Management Body
Explanation:
Under a cash board, the administration of the conversion standard and cash supply is given to a money related power that settles on choices about the valuation of a country's cash. Frequently, this financial authority has direct guidelines to move all units of homegrown cash available for use with unfamiliar money.
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18. Which body administers the TRIPS (Trade-Related Aspects of Intellectual Property Rights) agreement?
- World Bank (WB)
- United Nations Organization (UNO)
- World Trade Organization (WTO)
- United Nations Conference on Trade and Development (UNCTAD)
Answer: C) World Trade Organization (WTO)
Explanation:
The World Trade Organization Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is the most far-reaching multilateral settlement on licensed innovation (IP). It assumes a focal part in working with exchange information and inventiveness, in settling exchange arguments about IP, and in guaranteeing WTO individuals the scope to accomplish their homegrown arrangement goals. It outlines the IP framework as far as development, innovation move and public government assistance. The Agreement is a lawful acknowledgement of the meaning of connections among IP and exchange and the requirement for a fair IP framework.
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19. Who is the Ambassador and Permanent Representative of India for the World Trade Organization?
- JS Deepak
- Brajendra Navnit
- Anwar Hussain Shaik
- TS Deepak
Answer: B) Brajendra Navnit
Explanation:
Brajendra Navnit assumed charge as Ambassador and Permanent Representative of India to the WTO, Geneva on 29th June 2020.
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20. The World Trade Organization (WTO) was set up to carry out the last venture of ___ round arrangement of General Agreement on Tariffs and Trade?
- Uruguay
- Geneva
- Tokyo
- New York
Answer: A) Uruguay
Explanation:
The last and biggest General Agreement on Tariffs and Trade round was the Uruguay Round which kept going from 1986 to 1994 and prompted the World Trade Organization's creation. Though General Agreement on Tariffs and Trade had managed exchange products, the World Trade Organization and its arrangements presently cover exchange administrations and exchanged innovations, manifestations and plans (protected innovation).
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