Identify the functions of World Trade Organisation.
A. It is the only international organisation dealing with global rules of trade between nations.
B. It sets the rules for the global trading system
C. It resolves disputes between its member nations
D. It does not cover trade in services, such as telecommunication and banking.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → A, B, C only
The World Trade Organisation (WTO) was set up as a permanent institution for free and fair trade among nations. The GATT was transformed into the WTO from 1st January 1995.
(A) It is the only international organisation dealing with global rules of trade between nations. — True. The WTO is the only international organisation that deals with the global rules of trade.
(B) It sets the rules for the global trading system — True. The WTO sets the rules for the global trading system.
(C) It resolves disputes between its member nations — True. When member nations disagree on trade, the WTO resolves the dispute.
(D) It does not cover trade in services, such as telecommunication and banking. — False. The WTO also covers trade in services, such as telecommunication and banking, and other issues such as intellectual rights. NTA changed “also covers” to “does not cover”, and a true line became false. Read every word before you mark the answer.
NCERT (2026-27): “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.” |