World Trade Organization (WTO) MCQ Questions and Answers:

• World Trade Organization (WTO) – In April 1994, GATT member states ratified an agreement in Marrakesh, Morocco. 
• The Marrakesh Agreement decided to replace the GATT with a new body, the World Trade Organization (WTO). 
• The WTO was established on January 1, 1995. 
• The GATT has been a temporary, informal organization regulating world trade since 1948. 
• However, the WTO is a permanent body established by international agreement.
• The WTO is headquartered in Geneva.
• The GATT Agreement was signed on October 30, 1947 in Geneva by 23 countries to reduce tariffs on imports and trade. 
• The GATT, the General Agreement on Tariffs and Trade, came into force on January 1, 1948. 
• GATT was a temporary arrangement.

Objectives of WTO- 

• To raise the standard of living of the people in the member countries. 
• To increase full employment and effective demand. 
• Strive to increase production and trade of goods. 
• Strive to increase production and trade of services. 
• To see that the global resources will be used adequately. 
• Accept the concept of sustainable development. 
• Environmental conservation.

Multiple Choice Questions on WTO: 

1. What is WTO?

(1) The World Trade Organization is an international organisation that oversees and regulates international trade between countries.

(2) The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. 

(3) Both 1 and 2

(4) None of these 

Answer: 3

2. WTO stands for______

(1) World Trade Organisation 

(2) World Trading Organization 

(3) World Task Organization 

(4) None of these 

Answer: 1

3. When did the World Trade Organization come into effect?

(1) March 6, 1996

(2) April 8, 1994

(3) February 5, 1994

(4) January 1, 1995

Answer:  4

4. WTO aims at______

(1) establishing rules for domestic trade

(2) restricting trade practices

(3) liberalizing international trade

(4) none of these

Answer: C

5. The earlier name of the WTO was:

(1) UNIDO

(2) UNCTAD

(3) OECD

(4) GATT

Answer: 4

6. How many countries are members of WTO_______

(1)  207

(2) 195

(3) 160

(4) 164

Answer: 4

7. Where is the headquarters of the WTO located?

(1) Austria

(2) Geneva

(3) New York

(4) Washington DC

Answer: 2

8. WTO promote ______ trade.

(1) bilateral

(2) multilateral

(3) unilateral

(4) restricted

Answer: 2

9. The WTO is the successor to———––

(1) VAT

(2) GATT

(3) GTT

(4) ATT

Answer: 2

10. The WTO agreements cover _ 

(1) TRIPs

(2) IMF

(3) UNCTAD

(4) ASEAN

Answer: A

11. Which of the following one is not the objective of the WTO?

(1) To protect environment

(2) To improve the balance of payment situation of the member countries

(3) To improve the standard of living of people of the member countries

(4) To enlarge production and trade of goods

Answer: 2

12. The highest authority of WTO is________________.

(1) the dispute settlement body

(2) the ministerial conference

(3) the trade policy review body

(4) the general council

Answer: B

13. Which of the following statement is not true about the WTO?

(1) WTO is a permanent organisation

(2) Uruguay round gave the birth to the WTO

(3) Ministerial Conference is the highest policy making body of the WTO

(4) None of these 

Answer: 4