The WTO

Question 1

What is the WTO about?

Answer 1

• Traditional economists they suggest that free trade is beneficial for all costs involved
  -benefits division of labour, specialisation and comparative advantage
• The WTO was set up in 2995 and has two main functions- low protectionist barriers, ensure countries act accordingly

Question 2

Examples of what the WTO can do

Answer 2

• The trade negotionations, implementation and monitoring, dispute settlements, building trade capacity and outreach (diplomacy)

Question 3

The Doha Round

Answer 3

• The WTO launched a 9th round of talks in 2001 called the Doha Round because the first meeting took place in Doha, the capital city of Quatar
  -this cut protectionist measures on trade in agricultural goods
  -further reductions in tariffs on manufacturing goods
  -increased access to markets in services

Question 4

Weaknesses of World Trade Organisation

Answer 4

• Allows rich countries to exploit developing countries workers by paying them low wages
• Causing environmental catastrophe in developing countries
• Is destroying native cultures and ways of life
  -and leads to the impoverishment of developing countries