Consider the following statements regarding the "World Trade Organisation" (WTO): 1. The WTO was established with the primary objective of ensuring that developed countries retain their trade barriers. 2. Though the WTO aims for free trade, in practice, trade between developed and developing countries is often not fair. 3. Developing countries like India have completely refused to remove any trade barriers in compliance with WTO mandates. Which of the statements given above is/are correct?

The correct option is 2 only. Explanation The World Trade Organisation (WTO) is the only global international organization dealing with the rules of trade between nations. Established in 1995 as the successor to the General Agreement on Tariffs and Trade (GATT), its core objective is to ensure that trade flows as smoothly, predictably, and freely as possible. Statement-wise Analysis - Statement 1 is Incorrect. The primary objective of the WTO is to liberalize international trade by reducing or eliminating trade barriers such as tariffs and quotas. It was not established to ensure that developed countries retain trade barriers; rather, it aims to create a rules-based system where barriers are lowered globally to facilitate free trade. - Statement 2 is Correct. While the WTO advocates for free trade, there is significant criticism regarding the fairness of its implementation. Developed countries have often retained non-tariff barriers and provided massive subsidies to their agricultural sectors (e.g., in the US and EU), which distorts markets. Meanwhile, developing countries are often pressured to open their markets, leading to an imbalance where trade is not genuinely "fair" despite being "free" in principle. - Statement 3 is Incorrect. Developing countries, including India, have not completely refused to remove trade barriers. As members of the WTO, they have undertaken significant reforms, including the removal of quantitative restrictions on imports and the reduction of tariff rates, to comply with WTO mandates and integrate into the global economy. Key Takeaway Key Takeaway: The WTO aims to promote free trade through the reduction of tariff and non-tariff barriers. However, a major critique of the organization is the persistence of unfair trade practices, where developed nations retain protectionist measures (like agricultural subsidies) while developing nations are required to liberalize their economies.

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

mcqmedium

Consider the following statements regarding the "World Trade Organisation" (WTO):

The WTO was established with the primary objective of ensuring that developed countries retain their trade barriers.
Though the WTO aims for free trade, in practice, trade between developed and developing countries is often not fair.
Developing countries like India have completely refused to remove any trade barriers in compliance with WTO mandates.

Which of the statements given above is/are correct?

Official previous-year question

Verified 1 Aug 2026.

Options

A1, 2 and 3
B1 and 3 only
C1 only
D2 only

Did you get this right?

Solution

The correct option is 2 only.

Explanation

The World Trade Organisation (WTO) is the only global international organization dealing with the rules of trade between nations. Established in 1995 as the successor to the General Agreement on Tariffs and Trade (GATT), its core objective is to ensure that trade flows as smoothly, predictably, and freely as possible.

Statement-wise Analysis

Statement 1 is Incorrect. The primary objective of the WTO is to liberalize international trade by reducing or eliminating trade barriers such as tariffs and quotas. It was not established to ensure that developed countries retain trade barriers; rather, it aims to create a rules-based system where barriers are lowered globally to facilitate free trade.
Statement 2 is Correct. While the WTO advocates for free trade, there is significant criticism regarding the fairness of its implementation. Developed countries have often retained non-tariff barriers and provided massive subsidies to their agricultural sectors (e.g., in the US and EU), which distorts markets. Meanwhile, developing countries are often pressured to open their markets, leading to an imbalance where trade is not genuinely "fair" despite being "free" in principle.
Statement 3 is Incorrect. Developing countries, including India, have not completely refused to remove trade barriers. As members of the WTO, they have undertaken significant reforms, including the removal of quantitative restrictions on imports and the reduction of tariff rates, to comply with WTO mandates and integrate into the global economy.

Key Takeaway

Key Takeaway: The WTO aims to promote free trade through the reduction of tariff and non-tariff barriers. However, a major critique of the organization is the persistence of unfair trade practices, where developed nations retain protectionist measures (like agricultural subsidies) while developing nations are required to liberalize their economies.

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 2 only.

Explanation

Statement-wise Analysis

Statement 1 is Incorrect. The primary objective of the WTO is to liberalize international trade by reducing or eliminating trade barriers such as tariffs and quotas. It was not established to ensure that developed countries retain trade barriers; rather, it aims to create a rules-based system where barriers are lowered globally to facilitate free trade.
Statement 2 is Correct. While the WTO advocates for free trade, there is significant criticism regarding the fairness of its implementation. Developed countries have often retained non-tariff barriers and provided massive subsidies to their agricultural sectors (e.g., in the US and EU), which distorts markets. Meanwhile, developing countries are often pressured to open their markets, leading to an imbalance where trade is not genuinely "fair" despite being "free" in principle.
Statement 3 is Incorrect. Developing countries, including India, have not completely refused to remove trade barriers. As members of the WTO, they have undertaken significant reforms, including the removal of quantitative restrictions on imports and the reduction of tariff rates, to comply with WTO mandates and integrate into the global economy.