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CMA Foundation · Fundamentals of Business Economics and Management · Economic and Business Environment

Which statement about the World Trade Organization (WTO) is correct?

The WTO was established in 1995 as the successor to GATT. It administers multilateral trade agreements, provides a forum for negotiations and settles trade disputes among members. It is a global body, not a regional bloc or a reconstruction lender.

  1. AIt was established in 1995 as successor to GATT and administers multilateral trade rules and dispute settlementCorrect
  2. BIt was established in 1944 to provide long-term loans for post-war reconstruction
  3. CIt was established in 1964 to promote trade of developing countries through preferential tariffs only
  4. DIt is a regional trading bloc limited to Asian economies

Explanation

The WTO came into being on 1 January 1995, replacing GATT, and it administers trade agreements and settles disputes among members. The 1944 reference describes the World Bank/IMF era, and the WTO is global, not regional. India is a founding member.

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