WTO Objectives Overview

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the main purpose of the WTO's Most Favoured Nation principle?

  • To prioritize national security over international agreements
  • To allow preferential trade among selected countries
  • To guarantee equal trade benefits to all member nations (correct)
  • To impose tariffs on all member countries

Which of the following is NOT a goal of the WTO?

  • Promote regional trade agreements
  • Manage barriers to trade
  • Increase tariffs on imports (correct)
  • Facilitate international investment

What is one of the exceptions to the Most Favoured Nation principle?

  • Support for multinational corporations
  • Elimination of all tariffs
  • Trade only within the European Union
  • Promotion of infant industries (correct)

How does the WTO address issues of dumping?

<p>By encouraging retaliation from affected nations (D)</p> Signup and view all the answers

What role does the WTO play in preventing balance of payment problems?

<p>It encourages balanced trade practices among members (D)</p> Signup and view all the answers

What is a primary aim of the WTO regarding trade policies?

<p>Facilitate international trade in goods and services (B)</p> Signup and view all the answers

Which of the following is considered an exception to the Most Favoured Nation principle?

<p>Granting preferential treatment to developing nations (D)</p> Signup and view all the answers

How does the WTO respond to concerns regarding infant industries in newly industrializing countries?

<p>Allows temporary protection measures (B)</p> Signup and view all the answers

Flashcards

Most Favoured Nation (MFN) Principle

All WTO members treat each other equally, applying the same tariffs and trade rules to imports from all members.

MFN Exceptions

WTO rules allow countries to make exceptions to the MFN principle in specific cases.

Retaliation against Dumping

WTO allows countries to impose tariffs on imports if they're being sold below their cost of production (dumping) and harming domestic industries.

Protecting Infant Industries

Newly industrializing countries can use temporary protection to shield developing industries from international competition.

Signup and view all the flashcards

Industries of Strategic Importance

WTO allows countries to restrict trade if it's essential for national security, such as defense or essential resources.

Signup and view all the flashcards

WTO's Main Goal

The WTO aims to reduce tariffs and trade barriers, making it easier for goods, services, investments, and intellectual property to move freely between countries.

Signup and view all the flashcards

MFN Principle

The WTO's 'Most Favoured Nation' principle requires members to treat each other equally in trade, applying the same tariffs and rules to all.

Signup and view all the flashcards

Exceptions to MFN

The WTO allows for exceptions to the MFN principle in some situations, like when protecting national security or supporting infant industries.

Signup and view all the flashcards

WTO's Response to 'Dumping'

If a country sells goods below their production cost (dumping) and harms domestic industries, the WTO allows for retaliatory measures, like tariffs.

Signup and view all the flashcards

Study Notes

WTO Objectives

  • Reduce tariffs and barriers to trade in goods, services, investments, and intellectual property (IP). This includes managing and facilitating these domains.
  • Implement the Most Favoured Nation (MFN) principle, ensuring non-discrimination among member countries.
  • Allow exceptions to the MFN principle under specific circumstances.
  • Permit retaliation for dumping practices.
  • Provide support for infant industries, particularly in newly industrialising countries.
  • Protect industries crucial for national security.
  • Prevent excessive imports and balance-of-payments issues.
  • Allow for regional trade agreements.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser