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Q.Two statements are given below. They are Assertion (A) and Reason (R). Read both the statements carefully and choose the correct option : Assertion (A) : ‘World Trade Organisation (WTO) is widening the gulf between rich and poor by making rich countries richer.’ Reason (R) : ‘The influential nations in the WTO focus on their own commercial interests.’ Options : (A) Both (A) and (R) are correct and (R) is the correct explanation of (A). (B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A). (C) (A) is correct, but (R) is incorrect. (D) (A) is incorrect but (R) is correct.

CBSECBSE Class XII Board 2025MCQ· 1mImportance★★★★★
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The World Trade Organisation's structure allows powerful nations to prioritise their own commercial interests, which can lead to policies that disproportionately benefit richer countries and widen the global economic gap.

The World Trade Organisation (WTO) is an international body established with the primary aim of liberalising international trade. Its foundational principles include reducing trade barriers, promoting non-discrimination among trading partners, and ensuring a predictable and transparent trading system. The ultimate goal is to foster economic growth and improve living standards globally through free and fair trade. However, the practical outcomes of its operations have often been a subject of critical debate, particularly concerning its impact on global inequality.

Let us examine the assertion and reason provided:

Assertion (A): ‘World Trade Organisation (WTO) is widening the gulf between rich and poor by making rich countries richer.’

This assertion reflects a significant critique of the WTO's actual impact, despite its stated objectives. While the WTO aims to create a level playing field, the benefits of globalised trade, often facilitated by WTO agreements, have not been evenly distributed.

  • Unequal Capacity: Developed nations typically possess stronger economies, advanced technology, and established industries, allowing them to leverage reduced trade barriers more effectively. They can export competitive goods and services globally.
  • Market Access Issues: Despite agreements, developing countries often face difficulties in accessing markets in richer nations due to various non-tariff barriers or complex regulations.
  • Agricultural Subsidies: Many developed countries maintain substantial agricultural subsidies, which allow their farmers to sell produce at artificially low prices. This makes it extremely difficult for farmers in developing countries, who often lack similar government support, to compete in the global market, hindering their economic growth.
  • Intellectual Property Rights: WTO agreements on intellectual property rights, while protecting innovation, can sometimes make essential goods like medicines more expensive and less accessible in poorer countries, further exacerbating inequalities. These factors collectively suggest that the current framework and implementation of WTO rules can indeed disproportionately benefit richer nations, potentially contributing to a widening of the economic gap between the rich and the poor.

Reason (R): ‘The influential nations in the WTO focus on their own commercial interests.’

This statement is fundamentally accurate and describes a core reality of international negotiations.

  • National Interest First: Every sovereign nation, especially those with significant economic power, participates in international forums like the WTO primarily to advance its own national economic and commercial interests. Their delegations are mandated to secure the best possible terms for their industries, businesses, and citizens.
  • Negotiating Power: Nations with larger economies, greater trade volumes, and more sophisticated negotiating teams naturally wield more influence in shaping the agenda, drafting rules, and interpreting agreements within the WTO. …

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