UPSC Prelims 1996 · General Studies
Question 40: Economy and Social Development
Which of the following were the aims behind the setting up of the World Trade Organization (WTO)? I. Promotion of free trade and resource flows across countries. II. Protection of intellectual property rights. III. Managing balanced trade between different countries. IV. Promotion of trade between the former East Bloc countries and the western world. Select the correct answer by using the codes given below:
AnswerThe answer is (b).
The WTO, set up on 1 January 1995 after the Uruguay Round, aims to promote free trade by reducing barriers and to protect intellectual property rights through the TRIPS agreement. It does not manage balanced trade between countries (it works through rules, not through trade balances), nor was it set up to promote trade between the former East bloc and the West. Remember: free trade and TRIPS yes; balanced trade and East-bloc trade no.
- I. Promoting free trade and resource flows is the WTO's core aim.
- II. The TRIPS agreement protects intellectual property rights.
- III. The WTO sets rules for trade; it does not manage trade balances.
- IV. Promoting East-West trade was not a purpose of the WTO.
Why each option is right or wrong
- (a) Includes III and IV, which are not WTO aims.
- (b) Right: free trade and protection of intellectual property rights.
- (c) Leaves out free trade, the central aim, and includes balanced trade, which is not a WTO aim.
- (d) Includes IV, which is not an aim, and leaves out intellectual property rights.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 1996, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.