7. The WTO seems at times to be interfering in domestic policy sinceA) the line between domestic policies and de factor protectionism is often fuzzy.B) it is a supra-national organization with the power to overturn governments.C) it determines which nations may trade what with whom.D) it punishes naughty nations.E) it exempts the U.S. and other powerful member nations from many of its edicts
Question
- The WTO seems at times to be interfering in domestic policy sinceA) the line between domestic policies and de factor protectionism is often fuzzy.B) it is a supra-national organization with the power to overturn governments.C) it determines which nations may trade what with whom.D) it punishes naughty nations.E) it exempts the U.S. and other powerful member nations from many of its edicts
Solution
The answer is A) the line between domestic policies and de facto protectionism is often fuzzy. This is because the World Trade Organization (WTO) is an international organization that regulates trade between nations. Its main goal is to ensure that trade flows as smoothly, predictably, and freely as possible. However, in doing so, it often has to make decisions that can affect domestic policies of its member countries. For example, a country might have certain domestic policies that inadvertently favor its own industries over foreign ones. The WTO might see this as a form of protectionism, which it generally tries to reduce or eliminate. Therefore, it might intervene to change or influence those domestic policies, which can make it seem like it's interfering in domestic policy.
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