Comprehension
Read the following passage and answer the question that follows.
There are no World Trade Organisation (WTO) defi nitions of "developed" and "developing" countries. Members announce for themselves whether they are "developed" or "developing" countries. However, other members can challenge the decision of a member to make use of provisions available to developing countries. Developing country status in the WTO brings certain rights. There are for example provisions in some WTO Agreements which provide developing countries with longer transaction periods before they are required to fully implement the agreement and developing countries can receive technical assistance. That a WTO member announces itself as a developing country does not automatically mean that it will benefi t from the unilateral preference schemes of some of the developed country members such as the Generalized System of Preferences (GSP). In practice, it is the preference giving country which decides the list of developing countries.
Question: 1

Who decides whether one country is developing or developed ?

Updated On: Dec 21, 2025
  • The World Trade Organization
  • The neighbouring countries
  • The country itself
  • The preference giving country
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The Correct Option is C

Solution and Explanation

To determine whether a country is "developing" or "developed," we need to understand the policies and rules outlined in international organizations such as the World Trade Organization (WTO). Let us examine this step-by-step:

  1. Definition Criteria:
    • The WTO does not provide specific definitions for "developed" and "developing" nations.
  2. Self-Declaration:
    • Countries announce themselves as either "developed" or "developing."
    • This self-declaration suggests that a nation has significant control over how it categorizes itself.
  3. Challenging the Self-Declaration:
    • Other members of the WTO can challenge a country's self-declaration, especially when it pertains to using provisions available to developing countries.
  4. Implications of Developing Country Status:
    • There are benefits associated with being a "developing" country, such as longer transition periods for agreement implementation and eligibility for technical assistance.
    • This status does not automatically ensure benefits from all preference schemes, like the Generalized System of Preferences (GSP), since preference-giving countries make the final decision on eligibility.

Conclusion: From the information provided, it is clear that countries decide for themselves whether they are "developed" or "developing." Therefore, the correct answer is:

Correct Answer: The country itself

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Question: 2

 Who can change the decision of a country to make use of provisions available to developing countries ?

Updated On: Dec 21, 2025
  • The World Trade Organization
  • The neighbouring country
  • Any member country of WTO
  • The preference giving country
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The Correct Option is C

Solution and Explanation

To answer the question, "Who can change the decision of a country to make use of provisions available to developing countries?", we need to refer to the provided passage.

  1. Understanding the Context: The passage discusses the World Trade Organization (WTO) and how countries can designate themselves as "developed" or "developing". This status impacts the provisions and assistance available to them.
  2. Key Information from the Passage:
    • Members of the WTO declare if they are "developed" or "developing".
    • Other members of the WTO have the right to challenge a member's decision to utilize the provisions meant for developing countries.
    • The passage highlights that even if a country self-announces as a developing nation, the preference-giving country decides the list of countries that benefit from schemes like the Generalized System of Preferences (GSP).
  3. Analyzing Options:
    • The World Trade Organization: The passage does not state that the WTO itself can change the decision. The member countries challenge decisions within the WTO framework.
    • The neighbouring country: There is no mention that a neighbouring country has the authority to change such a decision unless it's a member of the WTO.
    • Any member country of WTO: The passage clearly states that other members can challenge a nation's decision to claim developing status. Thus, this option aligns correctly with the passage.
    • The preference giving country: While the preference-giving country decides the list of developing nations for certain schemes, it does not directly change a country's decision regarding WTO provisions.
  4. Conclusion: Based on the analysis and the information provided in the passage, "Any member country of WTO" is the correct answer. This option aligns with the fact that other WTO members have the right to challenge such decisions.

In summary, within the framework of the WTO, while countries self-designate their status, it is any member of the WTO that can question this designation when it comes to utilizing the provisions for developing countries.

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Question: 3

Why would a country like to announce itself as a developing country ?

Updated On: Dec 21, 2025
  • So that it can become member of WTO
  • So that it need implement WTO agreements
  • So that it gets some relaxation of time in implemenation WTO agreements
  • So that it can become the preference giving country
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The Correct Option is C

Solution and Explanation

To determine why a country might announce itself as a developing country within the context of the World Trade Organization (WTO), we need to consider the implications and benefits outlined in the comprehension passage provided.

  1. Understanding WTO Membership: The WTO does not have specific definitions of "developed" and "developing" countries. Members self-declare their status, but this proclamation can be challenged by other members.
  2. Benefits for Developing Countries: As per the passage, declaring as a developing country allows for certain rights under the WTO. Specifically, it mentions that developing countries have longer transaction periods to fully implement agreements. This is a significant advantage, as it provides them with additional time to comply with international trade rules, which aligns with the correct answer, "So that it gets some relaxation of time in implementation of WTO agreements."
  3. Technical Assistance: Developing countries also receive technical assistance, which can help them in building capacity and better integrating into the global trading system.
  4. Clarification of Incorrect Options:
    • "So that it can become a member of WTO": Membership is not determined by development status; it is about adherence to the WTO's rules.
    • "So that it need implement WTO agreements": Developing countries are indeed required to implement WTO agreements, but with specific time leniencies or phasing-in periods.
    • "So that it can become the preference giving country": Preference-giving is typically associated with developed countries, not developing ones.
  5. Conclusion: Thus, the primary reason for a country to declare itself as a developing nation in the WTO context is to gain the strategic advantage of extended time frames for implementing agreements, in addition to technical assistance, as explained in the passage.
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