Chapter 8R, Problem 3CTQ

To determine

The standards that can be recommended to organizations such as IMF, WTO, etc. who are coming out with new policies.

Explanation of Solution

Following standards that can be recommended to such organizations that ensure fair trading across the countries:

• The dependency of such organizations on developed countries does not allow them to make unbiased decisions.
• The policies or rules of such organizations should be consistent and should ensure the growth of developing countries.
• Trade policies imposed by such organizations should favor local traders along with small or new organizations rather than only supporting MNCs.
• Policies should help developing countries start new ventures that can create employment opportunities.

Economics Concept Introduction

World Trade Organization: World Trade Organization that is abbreviated as WTO refers to the organization formed to limit the negative aspects of globalization by regulating trade across countries.