Test: International Economic Institutions - B Com MCQ

The World Trade Organisation (WTO) is the international organization that aims to reduce barriers to trade. It acts as a forum for countries to negotiate and remove blocks they have on trade. This includes barriers such as tariffs, licensing requirements, and subsidies. The WTO was established in 1995 to replace the General Agreement on Tariffs and Trade (GATT) which coordinated international trade without a permanent organization. The WTO has 164 members and each country has one vote in its decision-making process.

The Most-Favoured Nation rule requires countries to give their best treatment to all members of the World Trade Organisation (WTO). This means that if a country reduces tariffs or provides any other favorable treatment to one country, it must extend the same treatment to all other WTO members. This rule promotes fair and equal treatment in international trade. Another important rule is National Treatment, which requires countries to give their best internal conditions to foreign products or services. These rules are part of the WTO's core treaties and aim to create a non-discriminatory trading environment.

The World Bank is the organization that focuses on reducing poverty in emerging market countries. It consists of two development institutions, the International Bank for Reconstruction and Development and the International Development Association. The World Bank provides low-interest loans, interest-free credit, and grants to help improve education, health, infrastructure, and other areas that contribute to economic development. Its goal is to bridge the economic divide between poor and rich countries by turning rich country resources into poor country growth. The World Bank works closely with other organizations such as the International Finance Corporation and the Multilateral Guarantee Agency to achieve its objectives.

According to its stated purpose, the World Bank focuses on overcoming poverty by spurring growth, especially in Africa. Africa is a region with significant poverty challenges, and the World Bank aims to support economic development and poverty reduction in this area. While the World Bank also works in other regions and on various issues such as climate change, micro-loans, and education, its primary goal is to address poverty and promote growth, particularly in Africa where poverty rates are high.

The United Nations Conference on Trade and Development (UNCTAD) focuses on reducing the trade gap between developed and developing countries. UNCTAD aims to promote international trade between these countries and accelerate economic development in the developing world. Its objectives include formulating principles and policies on international trade, negotiating trade agreements, and coordinating activities with other UN institutions. UNCTAD plays a significant role in addressing trade-related issues and supporting the economic growth of developing countries.

The current president of the World Bank is Jim Yong Kim. He was appointed in 2012 and has a background in healthcare and academic leadership. Before becoming the president of the World Bank, Kim was the president of Dartmouth College and co-founded the nonprofit organization Partners in Health. He has a strong focus on improving health services and has chaired departments at Harvard Medical School and Brigham and Women's Hospital. Kim reports to a 25-member Board of Executive Directors, and the United States, as the largest shareholder, has historically selected the World Bank president.

The World Bank provides low-interest loans and grants to improve education and infrastructure in developing countries. It focuses on various sectors, including education, health, agriculture, and natural resources management, to support economic development and poverty reduction. The World Bank's financial assistance aims to modernize a country's financial sector, improve access to quality education, and develop sustainable infrastructure. Through its lending programs, the World Bank helps countries invest in their human capital and build the necessary foundations for long-term economic growth.

The National Treatment rule requires countries to give their best treatment to foreign products or services. This means that if a country has certain regulations or requirements for its domestic products, it must apply the same conditions to foreign products. For example, if a country does not require domestic products to have specific labeling or safety standards, it cannot impose those requirements on imported products. National Treatment promotes fair competition and equal treatment of domestic and foreign goods and services. It is one of the fundamental rules of the World Trade Organisation (WTO) to ensure non-discriminatory trade practices.

The United Nations Conference on Trade and Development (UNCTAD) reviews and facilitates coordination of activities in the field of international trade. UNCTAD works as a center for harmonious trade and related documents, and it formulates principles and policies on international trade. It also makes proposals for implementing these policies and negotiates trade agreements. UNCTAD plays a vital role in promoting international trade between developed and developing countries, addressing trade gaps, and supporting economic development globally.

If a country violates World Trade Organisation (WTO) rules, the winning state can take retaliatory action in the form of trade sanctions. Trade sanctions can include imposing higher tariffs on the violating country's products or restricting trade in other ways. These sanctions serve as a measure to encourage compliance with WTO rules and ensure fair trade practices. The WTO has a Dispute Settlement Body where countries can file complaints against other countries they believe to be violating WTO rules. If the violating country fails to change its laws to comply with WTO rules, trade sanctions can be implemented.