Which of the following is a power of the WTO? A. It can restrict the

QUESTION

Which of the following is a power of the WTO?

A. It can restrict the membership of nations in other supranational organizations such as the United Nations.

B. It can grant loans to cash-strapped governments in poor nations.

C. It supersedes IMF and has complete authority over IMF’s actions.

D. It can issue a ruling instructing a member-state to change trade policies that violate GATT regulations.

E. It can make decisions related to international trade without considering the collective interests of member-states.

ANSWER

D
The arbitration panel of the WTO can issue a ruling instructing a member state to change trade policies that violate GATT regulations. If the violator refuses to comply with the ruling, the WTO allows other states to impose appropriate trade sanctions on the transgressor.