ECONOMICS
ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The WTO favors wealthy countries and hurts developing countries with high taxes on imports
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The WTO only favors developing countries and does nothing to help developed countries
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The WTO does nothing to protect intellectual property rights
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the WTO does not offer any help to pharmaceutical companies
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Detailed explanation-1: -Critics argue that the policies that support these principles fail to protect developing nations, and in some cases take advantage of them. For example, UNCTAD estimates that market distortions cost developing countries $700 billion annually in lost export revenue.
Detailed explanation-2: -Which of the following is one of the main criticisms against the WTO? Criticism against the WTO has largely come from the right, who charge that the WTO is antidemocratic because decisions are made behind closed doors in the interest of large corporations rather than the poor.
Detailed explanation-3: -The WTO agreements include numerous provisions giving developing and least-developed countries special rights or extra leniency-“special and differential treatment”. Among these are provisions that allow developed countries to treat developing countries more favourably than other WTO members.
Detailed explanation-4: -Simply put, rich countries understand that the WTO membership serves to benefit them while poor countries risk being shunned from global markets. The WTO appeals to countries by ensuring a ‘most favoured nation’ status to member-states.