Question

Adherence to the WTO means:

A. more avenues for outsourcing.
B. loss of national security to a large extent.
C. procurement of economies of scale.
D. loss of some degree of national sovereignty.
E. limited scope for foreign direct investments.

Answer 1

Adherence to the World Trade Organization (WTO) means following its rules and regulations, which can result in a loss of some degree of national sovereignty, but it also leads to procurement of economies of scale and reductions in trade barriers.

Step-by-step explanation:

Adherence to the World Trade Organization (WTO) means that a country agrees to follow the rules and regulations set by this international organization. It does not necessarily lead to more outsourcing or limited scope for foreign direct investments. However, it may involve a loss of some degree of national sovereignty, as countries have to comply with the decisions made by the WTO. The purpose of the WTO is to promote free and fair trade among its member countries, and it can lead to procurement of economies of scale and reductions in trade barriers, resulting in better products and increased profits for businesses.