20 WTO Quiz Questions and Answers

Question 1:
What does WTO stand for?
A) World Trade Organization
B) World Tariff Organization
C) World Transport Organization
D) World Tax Organization
Answer: A
Explanation: The WTO is the international body that deals with the rules of trade between nations, and its acronym stands for World Trade Organization, established to promote global trade.

Question 2:
When was the World Trade Organization officially established?
A) 1947
B) 1995
C) 1986
D) 2001
Answer: B
Explanation: The WTO was established on January 1, 1995, as the successor to the General Agreement on Tariffs and Trade (GATT), marking the culmination of the Uruguay Round negotiations.

Question 3:
What is the primary objective of the WTO?
A) To regulate global finance
B) To ensure smooth and predictable global trade
C) To control currency exchange rates
D) To manage environmental policies
Answer: B
Explanation: The WTO’s main goal is to help producers of goods and services, exporters, and importers conduct their business by providing a framework for negotiated trade agreements and dispute resolution.

Question 4:
Which principle of the WTO requires that a country must treat imports no less favorably than domestic products once they enter the market?
A) Most-Favored-Nation (MFN)
B) National Treatment
C) Tariff Reduction
D) Quantitative Restrictions
Answer: B
Explanation: National Treatment ensures that imported goods are not discriminated against compared to locally produced goods, promoting fair competition in the domestic market.

Question 5:
What was the key agreement that led to the creation of the WTO?
A) Kennedy Round
B) Tokyo Round
C) Uruguay Round
D) Doha Round
Answer: C
Explanation: The Uruguay Round of negotiations (1986–1994) resulted in the establishment of the WTO and expanded the scope of trade rules to include services, intellectual property, and more.

Question 6:
How many members does the WTO currently have as of 2023?
A) 164
B) 150
C) 180
D) 200
Answer: A
Explanation: As of 2023, the WTO has 164 member countries, with ongoing processes for additional countries to join, representing the majority of global trade.

Question 7:
What is the WTO’s dispute settlement mechanism primarily used for?
A) Resolving environmental disputes
B) Settling trade conflicts between members
C) Managing currency disputes
D) Enforcing labor laws
Answer: B
Explanation: The dispute settlement system allows members to resolve trade disagreements through a structured process, including panels and appeals, to ensure compliance with WTO rules.

Question 8:
Which WTO agreement covers trade in services?
A) GATT
B) GATS
C) TRIPS
D) TRIMs
Answer: B
Explanation: The General Agreement on Trade in Services (GATS) sets the rules for international trade in services, such as banking, telecommunications, and tourism.

Question 9:
What does the MFN principle require WTO members to do?
A) Treat all members equally in trade terms
B) Impose higher tariffs on favored nations
C) Limit trade to specific regions
D) Favor domestic producers over imports
Answer: A
Explanation: The Most-Favored-Nation principle mandates that any favorable treatment given to one member must be extended to all WTO members, promoting non-discrimination.

Question 10:
Which round of trade negotiations is currently ongoing in the WTO?
A) Uruguay Round
B) Doha Round
C) Kennedy Round
D) It is not specified as ongoing
Answer: D
Explanation: The Doha Round, launched in 2001, has been stalled, and as of now, the WTO is engaged in various plurilateral and informal negotiations rather than a single defined round.

Question 11:
What is the role of the WTO Director-General?
A) To lead military alliances
B) To oversee the organization’s operations and negotiations
C) To regulate global banking
D) To enforce domestic laws
Answer: B
Explanation: The Director-General manages the WTO’s day-to-day activities, represents the organization internationally, and facilitates member discussions on trade issues.

Question 12:
Which WTO agreement deals with intellectual property rights?
A) GATT
B) GATS
C) TRIPS
D) SPS
Answer: C
Explanation: The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) sets minimum standards for the protection of intellectual property, such as patents and copyrights.

Question 13:
How does the WTO promote developing countries’ interests?
A) By ignoring their needs
B) Through special provisions like technical assistance and longer transition periods
C) By imposing extra tariffs on them
D) By excluding them from negotiations
Answer: B
Explanation: The WTO provides differential treatment, including aid for trade and extended implementation periods, to help developing countries integrate into the global trading system.

Question 14:
What is a key difference between GATT and WTO?
A) GATT covered only goods, while WTO covers goods, services, and intellectual property
B) GATT was a permanent organization
C) WTO does not handle disputes
D) There is no difference
Answer: A
Explanation: GATT focused primarily on trade in goods, whereas the WTO expanded to include services (GATS) and intellectual property (TRIPS), making it a more comprehensive framework.

Question 15:
Which body is responsible for making decisions in the WTO?
A) The General Council
B) The World Bank
C) The United Nations
D) Individual member governments
Answer: A
Explanation: The General Council, composed of representatives from all members, handles decision-making on trade policies, with consensus as the primary method.

Question 16:
What does the term “safeguards” refer to in WTO rules?
A) Emergency measures to protect domestic industries from import surges
B) Rules for exporting goods
C) Environmental protections
D) Intellectual property defenses
Answer: A
Explanation: Safeguards allow a country to temporarily restrict imports if they are causing or threatening serious injury to domestic producers, under WTO guidelines.

Question 17:
How often are WTO ministerial conferences held?
A) Annually
B) Every two years
C) At least once every two years
D) Every five years
Answer: C
Explanation: Ministerial conferences, the highest decision-making body, are required to meet at least once every two years to review and set the organization’s agenda.

Question 18:
Which principle ensures that WTO rules apply to all members without exception?
A) Reciprocity
B) Transparency
C) Non-Discrimination
D) Predictability
Answer: C
Explanation: Non-discrimination, through MFN and National Treatment, ensures that WTO rules are applied equally to all members, fostering a level playing field.

Question 19:
What is the purpose of the WTO’s Trade Policy Review Mechanism?
A) To review members’ trade policies and practices
B) To set global tariffs
C) To handle financial aid
D) To mediate labor disputes
Answer: A
Explanation: This mechanism monitors and reviews the trade policies of members to promote transparency and ensure adherence to WTO agreements.

Question 20:
Which country was the first to join the WTO as a new member after its establishment?
A) China
B) Ecuador
C) Kyrgyz Republic
D) Bulgaria
Answer: C
Explanation: The Kyrgyz Republic was one of the first to accede in 1998, following the WTO’s establishment, demonstrating the process for new members.