Basic
What does WTO stand for?
A) World Tariff Organization
B) World Trade Organization
C) World Trade Order
B) World Trade Organization
Which of the following situations would likely lead to a dispute under WTO rules?
A) A country imposing tariffs on imports to protect a developing domestic industry.
B) A company facing financial losses due to fluctuations in currency exchange rates.
C) A government enacting environmental regulations affecting certain imported goods.
D) A trade union striking for higher wages in the manufacturing sector.
A) A country imposing tariffs on imports to protect a developing domestic industry.
How many agreements are there in the WTO that countries can use in disputes?
A) 7
B) 89
C) 60
D) 14
C) 60
What is the main and brief objective of the WTO?
A) Promote free trade
B) Protect domestic industries
C) Impose trade barriers
D) Increase tariffs
A) Promote free trade
What action can a country take if it believes another member country is violating WTO rules?
a) Initiate a trade war
b) File a complaint with the WTO’s Dispute Settlement Body (DSB)
c) Impose unilateral tariffs
d) Negotiate a bilateral agreement
b) File a complaint with the WTO’s Dispute Settlement Body (DSB)
How do countries become members of the WTO?
a) By paying an annual membership fee
b) By signing bilateral agreements with existing members
c) By meeting specific criteria and undergoing negotiations
d) By obtaining approval from the United Nations
Answer: c) By meeting specific criteria and undergoing negotiations
How many countries are currently members of the WTO?
A) 100
B) 150
C) 164
D) 200
C) 164
Which of the following situations would likely prompt a country to file a complaint with the WTO?
A) A disagreement over fishing rights in international waters.
B) Dispute over the ownership of an offshore oil drilling platform.
C) Allegations of unfair trade practices, such as dumping, by a foreign country.
D) Disagreement between countries regarding environmental pollution standards.
C) Allegations of unfair trade practices, such as dumping, by a foreign country.
Which of the following best fits an explanation of why the WTO was established?
A) bring small nations together to negotiate trade deal strictly between each other
B) to enact anti-dumping laws
C) bring all sizes of nations together to negotiate trade deals between each other
D) bring large nations to negotiate trade deals strictly between each other
C) bring all sizes of nations together to negotiate trade deals between each other
When was the organization established?
A) 1956
B) 1995
C) 1982
B) 1995
In which of the following scenarios would the WTO most likely intervene?
A) A country restricting the import of foreign films to promote its domestic film industry.
B) A country implementing measures to combat air pollution caused by industrial activities.
A) A country restricting the import of foreign films to promote its domestic film industry.
Reason: the restriction of foreign films without any valid justification implies that it is unfair and is discriminatory against foreign products.
Choose one of these countries listed below that are NOT part of the WTO.
A) Afghanistan
B) Monaco
C) Myanmar
D) Yemen
B) Monaco
What principle do you think guides how the WTO handles trade negotiations and agreements?
A) Protectionism
B) Reciprocity
C) Isolationism
D) Monopoly
B) Reciprocity (the practice of exchanging things or privelages with others for mutual benefit)
Which of the following actions would likely be considered a violation of WTO rules?
A) A country providing subsidies for reduced cost of production to its farmers to boost agricultural productivity.
B) A company refusing to share licensed technology with its foreign business partners.
C) A government implementing import tariffs in response to national security concerns.
A) A country providing subsidies for reduced cost of production to its farmers to boost agricultural productivity.
Reason: Providing subsidies to farmers can make their products cheaper, giving them an unfair advantage in international markets. This can hurt farmers in other countries who don't get such help. The WTO has rules against these subsidies to keep trade fair. So, giving subsidies to farmers can break WTO rules
How does the WTO resolve disputes between member countries?
A) Through direct negotiations facilitated by WTO mediators.
B) By imposing sanctions on the offending country.
C) Through a panel of experts who review the argument and make a decision based on WTO rules.
D) Both member countries meet up in a room to discuss the problems and resolve the issue.
C) Through a panel of experts who review the argument and make a decision based on WTO rules.