The World Trade Organisation (WTO) has been criticised and opposed by those who are worried about the effects of free trade and economic globalisation. Which of the following is NOT the reason for the opposition?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → It sets the rules for the global trading system and resolves disputes between its member nations.
The WTO looks after free and fair trade between nations. Its critics argue that free trade does not make ordinary people’s lives better and widens the gap between rich and poor countries.
Option (1) It sets the rules for the global trading system and resolves disputes between its member nations. — Not a reason for the opposition. This is the basic work of the WTO, not a complaint against it.
Option (2) The influential nations in the WTO focus on their own commercial interests. — A reason for the opposition. Powerful members look after their own trade, so rich countries become richer.
Option (3) Many developed countries have not fully opened their markets to products from developing countries. — A reason for the opposition. Poor countries must open their markets, but their own goods still find closed doors in rich countries.
Option (4) Issues of health, worker's rights, child labour and the environment are ignored. — A reason for the opposition. Critics argue that the WTO cares about trade and not about people’s health, workers, children or nature.
NCERT (2026-27): “World Trade Organisation … WTO is the only international organisation dealing with the global rules of trade between nations. It sets the rules for the global trading system and resolves disputes between its member nations. WTO also covers trade in services, such as telecommunication and banking, and others issues such as intellectual rights.” “The WTO has however been criticised and opposed by those who are worried about the effects of free trade and economic globalisation. It is argued that free trade does not make ordinary people’s lives more prosperous. It is actually widening the gulf between rich and poor by making rich countries more rich. This is because the influential nations in the WTO focus on their own commercial interests. Moreover, many developed countries have not fully opened their markets to products from developing countries. It is also argued that issues of health, worker’s rights, child labour and environment are ignored.” |