Why trade?

Question 1

What are 3 arguments for using protectionism ?

Answer 1

• infant industry protection
• reduce bop culture by account deficit
• prevent dumping where cheap subsidised goods are sold to other countries

Question 2

What is the WTO?

Answer 2

An organisation where member countries can try to resolve trade problems with each other

Question 3

What is the purpose of the WTO?

Answer 3

Tries to open markets and promote freer trade

Question 4

What are 4 criticisms of the WTO?

Answer 4

• run by the rich for the rich for the benefit of MNCs eg rich countries have not fully opened their markets to products from poor countries
• allows MNCs to exploit workers
• allows MNCs to damage the environment and depletes natural resources

Question 5

What are 4 arguments in the defence of the WTO ?

Answer 5

• democratic as rules written by member states
• encourages negotiation and provide mechanisms to ensure rules are enforceable
• by expanding world trade WTO helps to raise living standards