Bachelor of General Studies (BGS) Degree Practice Exam

What is the main goal of the World Trade Organization?

1. Increase tariffs among nations

2. Eliminate barriers to free trade among nations

3. Establish fixed exchange rates

4. Regulate global labor standards

The correct answer is: Eliminate barriers to free trade among nations

The main goal of the World Trade Organization (WTO) is to eliminate barriers to free trade among nations. The organization aims to facilitate smooth and predictable trading conditions by promoting a system of trade agreements that reduces tariffs, quotas, and other trade barriers. By fostering an environment where trade can flourish without unnecessary restrictions, the WTO encourages economic growth and cooperation between member countries. In doing so, the WTO helps to resolve trade disputes and provides a framework for negotiating trade agreements. This is essential for increasing economic integration, enhancing competition, and benefiting consumers through lower prices and greater availability of goods and services. The emphasis on free trade contrasts with the idea of increasing tariffs, which would work against the WTO's efforts to promote open markets. The other options, while related to aspects of international economics or trade, do not align with the primary objective of the WTO. Establishing fixed exchange rates is more associated with monetary policy and organizations like the International Monetary Fund (IMF). Regulating global labor standards is an important issue but is not the main focus of the WTO, which centers on trade practices rather than labor regulations.