Q.1 When was the World Trade Organization (WTO) established?
1948
1995
2001
1986
Explanation - The WTO was established on January 1, 1995, replacing the General Agreement on Tariffs and Trade (GATT).
Correct answer is: 1995
Q.2 Which agreement forms the foundation of the WTO?
GATT
NAFTA
OECD
UNCTAD
Explanation - The General Agreement on Tariffs and Trade (GATT) is the foundational treaty upon which the WTO was built.
Correct answer is: GATT
Q.3 Where is the headquarters of the WTO located?
Geneva, Switzerland
New York, USA
Paris, France
London, UK
Explanation - The WTO headquarters is located in Geneva, Switzerland.
Correct answer is: Geneva, Switzerland
Q.4 Which body is the top decision-making authority in the WTO?
Ministerial Conference
General Council
Dispute Settlement Body
Secretariat
Explanation - The Ministerial Conference, composed of trade ministers from all member countries, is the highest decision-making body of the WTO.
Correct answer is: Ministerial Conference
Q.5 Which of the following is NOT a primary function of the WTO?
Administering trade agreements
Providing a forum for trade negotiations
Resolving trade disputes
Regulating domestic labor laws
Explanation - The WTO focuses on international trade; it does not regulate domestic labor laws.
Correct answer is: Regulating domestic labor laws
Q.6 Which of the following agreements is part of the WTO framework?
TRIPS
Kyoto Protocol
Paris Agreement
BRICS Treaty
Explanation - The TRIPS agreement (Trade-Related Aspects of Intellectual Property Rights) is one of the key agreements under the WTO.
Correct answer is: TRIPS
Q.7 Which principle ensures that WTO members cannot discriminate between trading partners?
Most-Favored-Nation (MFN)
National Treatment
Reciprocity
Transparency
Explanation - The MFN principle mandates that any trade advantage given to one member must be extended to all WTO members.
Correct answer is: Most-Favored-Nation (MFN)
Q.8 What does the principle of 'National Treatment' mean in WTO?
Treating foreign and domestic goods equally after import
Prioritizing exports over imports
Applying tariffs only on imported goods
Encouraging free trade among neighbors
Explanation - National Treatment requires that imported goods be treated no less favorably than domestically produced goods.
Correct answer is: Treating foreign and domestic goods equally after import
Q.9 Which WTO body handles trade disputes between members?
Dispute Settlement Body
Trade Policy Review Body
General Council
Ministerial Conference
Explanation - The Dispute Settlement Body (DSB) oversees the resolution of trade disputes among WTO members.
Correct answer is: Dispute Settlement Body
Q.10 How many members did the WTO have as of 2023?
100
164
193
150
Explanation - As of 2023, the WTO has 164 member countries.
Correct answer is: 164
Q.11 Which sector is primarily governed by WTO agreements?
International trade
Global defense
Environmental regulation
Human rights
Explanation - The WTO primarily regulates international trade between countries.
Correct answer is: International trade
Q.12 Which WTO agreement deals with agriculture?
AoA
GATS
TRIPS
GATT
Explanation - The Agreement on Agriculture (AoA) sets rules for fair trade in agricultural products.
Correct answer is: AoA
Q.13 Which principle of WTO allows developed countries to provide temporary protection to certain industries?
Safeguard Measures
MFN
National Treatment
Reciprocity
Explanation - Safeguard measures permit temporary restrictions on imports to protect domestic industries from sudden surges.
Correct answer is: Safeguard Measures
Q.14 Which WTO agreement governs trade in services?
GATS
TRIPS
AoA
GATT
Explanation - The General Agreement on Trade in Services (GATS) regulates international trade in services.
Correct answer is: GATS
Q.15 What is the role of the WTO Secretariat?
Provide administrative and technical support
Set global tariffs
Resolve domestic trade disputes
Enforce national laws
Explanation - The Secretariat assists in the day-to-day operations, research, and administration of the WTO.
Correct answer is: Provide administrative and technical support
Q.16 Which principle discourages quantitative restrictions on imports and exports under the WTO?
No-Quotas Principle
MFN
National Treatment
Reciprocity
Explanation - The WTO generally prohibits quotas, allowing free flow of trade with some exceptions.
Correct answer is: No-Quotas Principle
Q.17 Which of the following is a key objective of the WTO?
Promote free trade
Regulate global currencies
Oversee military alliances
Implement global taxation
Explanation - WTO aims to facilitate and promote free and fair trade globally.
Correct answer is: Promote free trade
Q.18 Which agreement governs intellectual property rights under the WTO?
TRIPS
GATS
AoA
GATT
Explanation - The TRIPS agreement sets minimum standards for protecting and enforcing intellectual property rights.
Correct answer is: TRIPS
Q.19 The WTO replaced which previous organization?
GATT
IMF
World Bank
UNCTAD
Explanation - The WTO was established in 1995 to replace GATT and provide a more structured trade framework.
Correct answer is: GATT
Q.20 Which of the following is a key feature of WTO negotiations?
Rounds of multilateral negotiations
Bilateral trade wars
Military agreements
Cultural exchange programs
Explanation - WTO negotiations take place in rounds, where members discuss trade liberalization and rules.
Correct answer is: Rounds of multilateral negotiations
Q.21 Which WTO principle allows countries to retaliate if trade rules are violated?
Retaliation Principle
MFN
Safeguards
Dispute Settlement Mechanism
Explanation - The WTO's Dispute Settlement Mechanism provides a structured process for members to resolve disputes, including authorized retaliation.
Correct answer is: Dispute Settlement Mechanism
Q.22 Which sector does the WTO NOT directly regulate?
Defense industry
Agriculture
Services
Intellectual property
Explanation - WTO rules do not cover military or defense-related trade, focusing instead on commercial sectors.
Correct answer is: Defense industry
Q.23 Which WTO principle promotes gradual trade liberalization?
Reciprocity
MFN
National Treatment
Transparency
Explanation - Reciprocity ensures that trade concessions are exchanged fairly among members to gradually liberalize trade.
Correct answer is: Reciprocity
Q.24 Which agreement allows developing countries longer time periods to implement WTO provisions?
Special and Differential Treatment (SDT)
GATT
TRIPS
GATS
Explanation - SDT provisions grant developing countries flexibility in implementing WTO agreements to support their economic growth.
Correct answer is: Special and Differential Treatment (SDT)
Q.25 Which body reviews the trade policies of WTO members periodically?
Trade Policy Review Body
Dispute Settlement Body
Ministerial Conference
Secretariat
Explanation - The Trade Policy Review Body monitors and evaluates members’ trade policies to ensure transparency and compliance.
Correct answer is: Trade Policy Review Body