Question

In which of the following scenarios would the WTO be criticized?

a. Less-expensive goods promote consumer well-being.
b. BMW of Germany can sell its cars in the United States.
c. Japanese car manufacturing boosts the nation’s economy.
d. A Japanese textile company purchases US cotton instead of Kenyan cotton.

Answer 1

"d. A Japanese textile company purchases US cotton instead of Kenyan cotton" would be an example of such a time, since some could argue that Kenya needs the revenue more than the United States.

Answer 2

The correct option is option d. "A Japanese textile company purchases US cotton instead of Kenyan cotton". The World Trade Organization (WTO) is the organism that deals with the global rules of trade between nations. The countries that are part of this organization should follow global rules to fair trades. Kenya has been a WTO member since 1 January 1995, and as a developing country the selling of cotton is essential for his economy, in comparison to US that have a more diverse economy. For this reason, a Japanese textile shifting their purchases to US instead of Kenya is something that WTO must not allow.