Multiple Choice Questions and Answers (MCQs) on World Trade Organization For Civil Services
Question 1 : The most favoured nation (MFN) clause under the WTO regime is based on the principle of
a) Non-discrimination between nations
b) Discrimination between nations
c) Differential treatment between locals and foreigners
d) Uniform traffic across commodities
Answer : a
Question 2 : Which of the following were the aims behind forming the World Trade Organization (WTO)?
- Promotion of free trade and resource flows across countries
- Protection of intellectual property rights
- Balance of trade among member nations
- Promotion of trade between the former East Bloc countries and the Western world
Select the correct answer using the codes given below :
a) 1, 2, 3, and 4
b) 1, 2, and 4
c) 2 and 3
d) 1 and 4
Answer : a
Question 3 : Which of the following statements is not true?
a) The World Trade Organization (WTO) requires member nations to give national treatment to international goods and services.
b) The General Agreement on Tariffs and Trade (GATT) was replaced by the World Trade Organization (WTO) in 1995.
c) The most favoured nation principle under GATT provided that preferential trading agreements reached with one country should be extended to other countries.
d) The WTO has been able to cover in its agreements the direct taxation policies of member nations.
Answer : d
Question 4 : TRIPS (Trade-Related Aspects of Intellectual Property Rights) agreement is administered by:
a) United Nations Conference on Trade and Development (UNCTAD)
b) United Nations Organization (UNO)
c) World Trade Organization (WTO)
d) World Bank (WB)
Answer : c
Question 5 : Which of the following categories of agricultural subsidies are allowed under WTO ?
a) Green box
b) Blue box
c) Red box
d) Amber box
Answer : a
Question 6 : Consider the following statements:
- Headquarter of the World Trade Organization (WTO)is in Doha.
- The World Intellectual Property Organization is a specialized agency of the WTO.
Which of the statements given above is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer : d
Question 7 : Consider the following statements about special safeguards mechanism (SSM) under the WTO:
- SSM allows member countries of the WTO to designate agricultural products that are important from the point of view of rural development, livelihood security, and food security needs.
- The agricultural products designated under SSM are eligible for flexible tariff structure.
Which of the statements given above is/are correct ?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 and 2
Answer : c
Question 8 : Match List I with List II and select the correct answer using the codes given below the lists:
List I List II
1. WTO (A) Provides loans to address short-term balance of payment problems
2. IDA (B) Multilateral trade negotiation body
3. IMF (C) Sanction of soft loans
4. IBRD (D) Facilitating lending and borrowing for reconstruction and development
a) 1-B, 2-C, 3-D, 4-A
b) 1-B, 2-C, 3-A, 4-D
c) 1-C, 2-B, 3-D, 4-A
d) 1-C, 2-B, 3-A, 4-D
Answer : b
Question 9 : Consider the following statements regarding the geographical indication (GI) tag:
- The GI tag can be used over both manufactured and agricultural products.
- The GI tag prevents a third party to use GI indication if the product does not confirm to the required standards.
- A third party can make the product using the set traditional techniques without using the GI tag.
Which of the statements given above is/are correct?
a) 1 only
b) 1 and 2
c) 2 and 3
d) 1, 2, and 3
Answer : d
Question 10 : Consider the following statements regarding GATs:
- India is interested in the opening of Mode 2 of services.
- Mode 2 includes services such as business process outsourcing and transportation.
- HIB visa fee hike by the United States restricts opening of Mode 4 of services.
Which of the statements given above is/are correct?
a) 3 only
b) 1 and 2
c) 2 and 3
d) 1, 2, and 3
Answer : a