With reference to the World Trade Organisation (WTO), consider the following statements: 1. It was started at the initiative of the developing countries to protect their agricultural interests. 2. Its aim is to liberalise international trade and establish rules regarding it. 3. In practice, developed countries have retained trade barriers while forcing developing countries to remove them. Which of the statements given above is/are correct?

The correct option is 2 and 3 only. Explanation The World Trade Organisation (WTO) was established in 1995 as the successor to the General Agreement on Tariffs and Trade (GATT). It is the only global international organization dealing with the rules of trade between nations. Statement-wise Analysis: - Statement 1 is Incorrect. The WTO was not started solely at the initiative of developing countries to protect their agricultural interests. It was established following the Marrakesh Agreement, largely driven by developed nations (such as the USA and European Union members) seeking to expand markets for goods and services. Developing countries were often compelled to join to gain market access, rather than it being their initiative for protection. - Statement 2 is Correct. The primary objective of the WTO is to liberalize international trade, ensure that trade flows as smoothly, predictably, and freely as possible, and establish a rule-based trading regime. - Statement 3 is Correct. This reflects a major criticism of the WTO functioning. In practice, developed countries have often retained trade barriers (such as high agricultural subsidies and non-tariff barriers) to protect their domestic markets, while simultaneously pressuring developing countries to remove trade barriers and open their markets to foreign competition. Key Takeaway: While the WTO aims to establish a fair, rule-based global trading system, it faces significant criticism regarding the asymmetry in trade practices where developed nations often maintain protectionist measures despite advocating for liberalization in developing economies.

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

mcqmedium

With reference to the World Trade Organisation (WTO), consider the following statements:

It was started at the initiative of the developing countries to protect their agricultural interests.
Its aim is to liberalise international trade and establish rules regarding it.
In practice, developed countries have retained trade barriers while forcing developing countries to remove them.

Which of the statements given above is/are correct?

Official previous-year question

Verified 1 Aug 2026.

Options

A1 and 2 only
B1, 2 and 3
C2 only
D2 and 3 only

Did you get this right?

Solution

The correct option is 2 and 3 only.

Explanation

The World Trade Organisation (WTO) was established in 1995 as the successor to the General Agreement on Tariffs and Trade (GATT). It is the only global international organization dealing with the rules of trade between nations.

Statement-wise Analysis:

Statement 1 is Incorrect. The WTO was not started solely at the initiative of developing countries to protect their agricultural interests. It was established following the Marrakesh Agreement, largely driven by developed nations (such as the USA and European Union members) seeking to expand markets for goods and services. Developing countries were often compelled to join to gain market access, rather than it being their initiative for protection.
Statement 2 is Correct. The primary objective of the WTO is to liberalize international trade, ensure that trade flows as smoothly, predictably, and freely as possible, and establish a rule-based trading regime.
Statement 3 is Correct. This reflects a major criticism of the WTO functioning. In practice, developed countries have often retained trade barriers (such as high agricultural subsidies and non-tariff barriers) to protect their domestic markets, while simultaneously pressuring developing countries to remove trade barriers and open their markets to foreign competition.

Key Takeaway:

While the WTO aims to establish a fair, rule-based global trading system, it faces significant criticism regarding the asymmetry in trade practices where developed nations often maintain protectionist measures despite advocating for liberalization in developing 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?

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

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

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

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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?

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The correct option is 2 and 3 only.

Explanation

Statement-wise Analysis:

Statement 1 is Incorrect. The WTO was not started solely at the initiative of developing countries to protect their agricultural interests. It was established following the Marrakesh Agreement, largely driven by developed nations (such as the USA and European Union members) seeking to expand markets for goods and services. Developing countries were often compelled to join to gain market access, rather than it being their initiative for protection.
Statement 2 is Correct. The primary objective of the WTO is to liberalize international trade, ensure that trade flows as smoothly, predictably, and freely as possible, and establish a rule-based trading regime.
Statement 3 is Correct. This reflects a major criticism of the WTO functioning. In practice, developed countries have often retained trade barriers (such as high agricultural subsidies and non-tariff barriers) to protect their domestic markets, while simultaneously pressuring developing countries to remove trade barriers and open their markets to foreign competition.

Key Takeaway: