The Uruguay round of GATT ensured the establishment of the World Trade Organisation (WTO). This set of 10 questions based on the World Trade Organisation. We have given explanation of the questions for the convenience of the students. We are optimistic that this set will be very helpful in the success of all the aspirants preparing for competitive examinations like IAS/PCS/RO/SSC etc.
1. At present how many members are in the WTO?
Explanation: As of July 2016, there were 164 members of the WTO. During the 10th Ministerial Conference held on 17 Dec. 2015 in the Nairobi (Kenya); two new members were added viz. Liberia (163rd) and Afghanistan (164th).
2. Where is the headquarter of the WTO?
(a). New York
(b). Washington DC
Explanation: Like the GATT, headquarter of the WTO is also situated in the Geneva (Switzerland).
3. Which of the following statement is not true about the WTO?
(a). WTO is a permanent organisation
(b). Uruguay round gave the birth to the WTO
(c).Ministerial Conference is the highest policy making body of the WTO
(d).WTO was officially constituted on 1 January 1991.
Explanation: The members of the GATT signed an agreement during the Uruguay round in April 1994 and on January 1, 1995 the WTO was established.
4. Which of the following institutions is not part of the World Bank community?
Explanation: WTO or World Trade Organisation is not part of the World Bank community. World Bank group is comprised of the five institutions i.e. International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID).
5. Which of the following country is not the member of the WTO?
(d). None of these
Explanation: There are some big economies of the world but they are not the member of the WTO. These countries are; Iran, Serbia, Algeria,Turkmenistan, Azerbaijan, sudan, Belarus and Bosnia and Herzegovina.
6. Which of the following statements is not correct?
(a) Both the IMF & IBRD have headquarters in Washington
(b) Both IMF & World Bank are the known as the Bretton Woods twins.
(c) IBRD is known as World Bank also
(d) India's vote share in the International Monetary Fund is 10%
Explanation: India's share in the International Monetary Fund's vote share is 2.64% of total votes while as on April 2018, India’s quota in the IMF is 2.76%.
7. Which of the following is not the objective of the WTO?
(a). To improve the standard of living of peoples of the member countries
(b). To enlarge production and trade of goods
(c). To protect environment
(d). To improve the Balance of Payment situation of the member countries
Explanation: WTO is not responsible of the improvement in the Balance of Payment of the member countries while other options given in the question are objectives of the WTO.
8. Which of the following body is not related to the WTO?
(a). Dispute Settlement Body
(b).Trade Policy Review Body
(c). Council of trade in goods
(d). Exchange Rate Management Body
Explanation: Exchange Rate Management Body is not associated with the WTO while other bodies are closely related to the WTO.
9. Which of the followings are called Brettonwoods Twins?
(A) IMF & International Bank for Reconstruction and Development (IBRD)
(B) IMF & World Trade Organisation
(C) IBRD & World Trade Organisation
(D) None of the above
Explanation: IMF & IBRD was founded altogether in 1946 in the US. This is why they are called Brettonwoods Twins.
10. Which of the following institution is associated with Dunkel Proposals?
(A) World Bank
(B) International Monetary Fund
(C) World Trade Organization
(D) United Nations Organization
Explanation: Uruguay Round of the GATT on multilateral trade negotiations has given birth to the Dunkel Draft. World Trade Organization was also given birth by the Uruguay Round.