WTO, IMF, and OPEC

Q.

Explain the three types of movements or flows within the international economic exchange. Find one example of each type of flow which involved India and Indians, write a short account of it.

Q.

What are the types of trade credit?

Q. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Why do international organisations such as the International Monetary Fund (IMF) and World Trade Organization (WTO) believe that there should be no barriers to foreign trade?

1. Trade barriers increase the cost of goods and services.
2. Trade barriers increase the competition between national and international producers.
3. Trade barriers hamper the economic growth of countries.
4. Trade barriers decrease the cost of production of goods and services.

Q. What is/are the role(s) of the World Trade Organization (WTO) when a country wants to become its member?

1. Suggests changes in international trade policies of the country that wishes to be a part of the WTO
2. Brings stability and peace in the country that wishes to be a part of the WTO
3. Provides subsidies to increase production in the country that wishes to be a part of the WTO
4. Moderates and supervises discussions between member countries regarding terms and conditions of trade

Q. Match the following international organisations with their objectives.

1. Ensure regular supply of oil
2. Reduce trade barriers
3. Facilitate international trade

Q. Apart from removing obstacles influencing foreign trade, what does the World Trade Organization do for the member countries?

1. Promotes financial stability in member countries
2. Brings down cost of living in member countries
3. Stimulates economic growth of its member countries
4. Stimulates employment opportunities in member countries

Q. The World Trade Organization tries to remove like taxes on imports from other countries.

1. trade treaties
2. trade policies
3. trade barriers
4. trade agreements

Q. Michael established a cotton spinning mill in the United States of America and imported raw cotton from India. However, while importing raw materials from India, the United States government imposed high tariffs. Similarly, India imposed high taxes on the clothes imported from the USA.

Based on the above information, answer the following questions:
(a) Why did the USA impose trade barriers?
(b) How can the problem of trade barriers be resolved?

1. (a) To penalise all the people who import goods from other countries
   (b) By consulting the United Nations
2. (a) To penalise all the people who import goods from other countries
   (b) By consulting the International Monetary Fund
3. (a) To protect its domestic industries from foreign competition
   (b) By consulting the World Trade Organization
4. (a) To protect its domestic industries from foreign competition
   (b) By consulting the International Trade Centre

Q. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> What does the World Trade Organization (WTO) do to solve conflicts and disputes between member countries?

1. WTO experts help these countries find solutions through consultations with each other.
2. The WTO does not interfere between conflicts of member countries and allows them to resolve the issues by themselves.
3. The WTO seeks permission from the United Nations before taking any decision.
4. The WTO tries to resolve the conflict with the help of other member countries.

Q. Which of the following international organisations resolves trade war between member countries?

1. International Monetary Fund
2. World Trade Organization
3. Organization of the Petroleum Exporting Countries
4. World Bank

Q. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> When and where was the World Trade Organization (WTO) established?

1. The WTO was established on 1 April 1995 in Geneva.
2. The WTO was established on 1 January 1991 in Geneva.
3. The WTO was established on 1 January 1995 in the United States of America.
4. The WTO was established on 1 January 1995 in Geneva.

Q. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Which of the following is out of the perview of the World Trade Organization (WTO)?

1. Presiding over and overseeing discussions on the terms and conditions of trade between countries
2. Suggesting changes in policies of other countries, so that they can trade freely
3. Solving disputes and conflicts between member nations to ensure free trade
4. Determining the price of the product that will be traded between the two countries

Q. When the world economy suffers, people lose their jobs, banking systems fail, and businesses incur losses, does the World Trade Organization help its member countries?

1. Yes. The WTO tries to make more and more countries part of the organisation.
2. No. It is outside the purview of the WTO.
3. No. Lesser the trade, better it is, as there will be no pollution due to transportation of goods.
4. Yes. The WTO tries to bring stability by trading between countries.

Q. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Identify which of the following are the functions of the World Trade Organization.

1. It helps in maintaining peace and stability between member nations.
2. It promotes international financial stability.
3. It ensures economic growth of its member countries.
4. It moderates and supervises the discussion regarding terms and conditions of trade between countries.

Q. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Which organisation works to ensure the stability of international finance?

1. International Financial Corporation
2. International Monetary Fund
3. Global Financial System
4. Bank for International Settlement

Q. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Diman is the biggest oil manufacturing country in the world. It produces about 70% of the total oil produced in the world. Hence, it rules the world's oil market. It is willing to sell oil at exorbitant prices such that it is out of reach of many countries.

However, it cannot sell oil at such high rates. How is that possible?

1. The Oil and Petroleum Exporting Countries coordinates with the petroleum policies of oil-producing nations and ensures regular supply of oil at right prices.
2. The Organization of the Petroleum Exporting Countries coordinates with the petroleum policies of oil-producing nations and ensures regular supply of oil at right prices.
3. The Indian Oil Corporation coordinates with the petroleum policies of oil-producing nations and ensures regular supply of oil at right prices.
4. The Bureau of Land Management (BLM) Oil and Gas coordinates with the petroleum policies of oil-producing nations and ensures regular supply of oil at right prices.

Q. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Which of the following organisations help(s) smoothen the process of trade between nations?

1. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> World Trade Organization
2. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> International Monetary Fund
3. United Nations
4. Organization of the Petroleum Exporting Countries