International TradeMTP - June 2023 (Inter)Question 171 of 20
All Questions

GATT was replaced by:

Options

AIMF
BWorld Bank
CWTO
DUNCTAD
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Correct Answer

✅ Option c — WTO

All Options:

  • AIMF
  • BWorld Bank
  • CWTO
  • DUNCTAD

Detailed Solution & Explanation

To determine the correct answer, let's break down the information step by step: • The General Agreement on Tariffs and Trade (GATT) was a multilateral trade agreement that aimed to reduce tariffs and other trade barriers. • In 1995, GATT was replaced by a more comprehensive international organization that would oversee global trade. • This new organization is responsible for implementing and enforcing trade agreements, resolving trade disputes, and providing a framework for trade negotiations. • The correct replacement for GATT is the World Trade Organization (WTO), which is the primary international organization dealing with the global rules of trade between nations. The WTO is the correct answer because it took over the functions of GATT and expanded its scope to include services and intellectual property. • Options like IMF (International Monetary Fund) and UNCTAD (United Nations Conference on Trade and Development) are incorrect because they have different roles, with IMF focusing on international monetary cooperation and UNCTAD focusing on development and trade issues, but not replacing GATT.

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.

More Questions from International Trade

Exchange rate determined by market forces is called:

Tariffs generally:

Balance of Trade refers to:

WTO was established in:

Devaluation of currency encourages:

Comparative Cost Advantage theory was given by:

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