Consider the following statements regarding the "Double Standard" of developed countries in WTO: 1. Developed countries often force developing countries to remove trade barriers. 2. Developed countries have completely stopped providing financial support to their farmers. 3. Despite WTO rules, developed countries have often retained trade barriers to protect their own industries. Which of the statements given above is/are correct?

The correct option is 1 and 3 only. Explanation The critique of "Double Standards" in the World Trade Organization (WTO) framework highlights the asymmetry in trade rules where developed nations advocate for liberalization in developing economies while maintaining protectionist measures for their own sensitive sectors. - Statement 1 is Correct: Developed countries consistently pressure developing nations to lower tariffs and remove non-tariff barriers to facilitate market access for their industrial goods and services. This push for trade liberalization is a central theme in WTO negotiations. - Statement 2 is Incorrect: Developed countries have not stopped providing financial support to their farmers. Significant agricultural subsidies (often categorized under the Green Box or Blue Box, and sometimes distorting Amber Box measures) continue to be provided by major economies like the USA and the European Union. These subsidies artificially lower production costs, distorting global prices and disadvantaging farmers in developing countries. - Statement 3 is Correct: Despite WTO rules aiming for free trade, developed countries have retained various trade barriers to protect domestic industries, particularly in agriculture and textiles. This selective protectionism prevents developing countries from fully benefiting from their comparative advantages in these sectors. Key Takeaway: The "Double Standard" refers to the practice where developed nations demand market access and deregulation from developing countries while simultaneously continuing to subsidize their own agriculture and protect specific domestic industries.

NCERT Class 10 Economics — Chapter 4: Globalisation and the Indian Economy

mcqmedium

Consider the following statements regarding the "Double Standard" of developed countries in WTO:

Developed countries often force developing countries to remove trade barriers.
Developed countries have completely stopped providing financial support to their farmers.
Despite WTO rules, developed countries have often retained trade barriers to protect their own industries.

Which of the statements given above is/are correct?

Official previous-year question

Verified 1 Aug 2026.

Options

A1, 2 and 3
B2 only
C1 and 2 only
D1 and 3 only

Did you get this right?

Solution

The correct option is 1 and 3 only.

Explanation

The critique of "Double Standards" in the World Trade Organization (WTO) framework highlights the asymmetry in trade rules where developed nations advocate for liberalization in developing economies while maintaining protectionist measures for their own sensitive sectors.

Statement 1 is Correct: Developed countries consistently pressure developing nations to lower tariffs and remove non-tariff barriers to facilitate market access for their industrial goods and services. This push for trade liberalization is a central theme in WTO negotiations.
Statement 2 is Incorrect: Developed countries have not stopped providing financial support to their farmers. Significant agricultural subsidies (often categorized under the Green Box or Blue Box, and sometimes distorting Amber Box measures) continue to be provided by major economies like the USA and the European Union. These subsidies artificially lower production costs, distorting global prices and disadvantaging farmers in developing countries.
Statement 3 is Correct: Despite WTO rules aiming for free trade, developed countries have retained various trade barriers to protect domestic industries, particularly in agriculture and textiles. This selective protectionism prevents developing countries from fully benefiting from their comparative advantages in these sectors.

Key Takeaway: The "Double Standard" refers to the practice where developed nations demand market access and deregulation from developing countries while simultaneously continuing to subsidize their own agriculture and protect specific domestic industries.

Your note

More from Chapter 4: Globalisation and the Indian Economy

The term "Containerisation" in the context of globalisation has primarily led to: 1. Huge reduction in port handling costs. 2. Increased time required for the delivery of goods to export markets. 3. Ability to load goods intact onto ships, railways, planes, and trucks. Which of the statements given above is/are correct?

easy

Which international organisation is primarily mandated to establish rules regarding global trade and ensure their compliance?

easy

The rapid improvement in which of the following has been the major factor stimulating the globalisation process?

easy

Which one of the following is NOT a primary factor considered by Multinational Corporations (MNCs) when establishing production units in a country?

easy

In the context of globalisation in India, which one of the following industries has generally remained resilient compared to others where small manufacturers faced stiff competition?

medium

Keep practising Chapter 4: Globalisation and the Indian Economy

Work through every question from this NCERT chapter.

Browse all NCERT Class 10 Economics chapters

The correct option is 1 and 3 only.

Explanation

Statement 1 is Correct: Developed countries consistently pressure developing nations to lower tariffs and remove non-tariff barriers to facilitate market access for their industrial goods and services. This push for trade liberalization is a central theme in WTO negotiations.
Statement 2 is Incorrect: Developed countries have not stopped providing financial support to their farmers. Significant agricultural subsidies (often categorized under the Green Box or Blue Box, and sometimes distorting Amber Box measures) continue to be provided by major economies like the USA and the European Union. These subsidies artificially lower production costs, distorting global prices and disadvantaging farmers in developing countries.
Statement 3 is Correct: Despite WTO rules aiming for free trade, developed countries have retained various trade barriers to protect domestic industries, particularly in agriculture and textiles. This selective protectionism prevents developing countries from fully benefiting from their comparative advantages in these sectors.