Question

Consider the following statements and select the correct answer from the codes given below: 

Assertion (A): The W.T.O. aims to promote free trade. 

Reason (R): It does not manage the global economy impartially. 

Codes: 

(a) Both A and R are true and R is the correct explanation of A. 

(b) Both A and R are true, but R is not the correct explanation of A. 

(c) A is true, but R is false. 

(d) A is false, but R is true.

Answer 1

(b) The WTO established in 1995. It aims to promote free trade, but it does not manage the global economy impartially. The organization deals with regulation of trade between participating countries; it provides a framework for negotiating and formalizing trade agreements, and a dispute resolution process aimed at enforcing participant’s adherence to WTO agreements, which are signed by representatives of member governments and ratified by their parliaments.