International TradePYQ - Jan 2021 (Inter)Question 166 of 20

WTO was established in:

Options

A1991

B1995

C2000

D1947

For any discrepancies in this question, email contact@cadada.in

Correct Answer

✅ Option b — 1995

All Options:

A1991
B1995
C2000
D1947

Detailed Solution & Explanation

To determine when the World Trade Organization (WTO) was established, let's consider the key events and agreements that led to its formation. • The WTO is a successor to the General Agreement on Tariffs and Trade (GATT), which was established in 1947 to promote international trade. • However, the WTO was formed to further strengthen the international trading system, and this happened as a result of the Uruguay Round of trade negotiations, which concluded in 1994. • The WTO officially came into existence on January 1, 1995, replacing GATT and expanding its scope to include services and intellectual property. The correct answer is based on the date when the WTO officially started operating, which is 1995. • Option 1991 is incorrect because it is before the conclusion of the Uruguay Round, and option 1947 is incorrect because that is when GATT was established, not the WTO. • Option 2000 is also incorrect as it is after the WTO was established.

About This Chapter: International Trade

Paper

Paper 4: Business Economics

Weightage

10%

Key Topics

Theories, Trade Policy, Exchange Rates

This chapter explores trade between nations — why countries trade, the theories of Absolute and Comparative Advantage, Balance of Payments, Exchange Rate systems (Fixed vs Flexible), and India's trade policy including tariffs, quotas, and WTO rules.

View Official ICAI Syllabus

Exam Strategy Tip

Understand Comparative Advantage theory thoroughly — it's the foundation of international trade. Also focus on the Balance of Payments structure and what causes deficits.

Ready to Master International Trade?

Practice all 20 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free