How can the WTO help reduce the development gap?

How can the WTO help reduce the development gap?

• A. By making it easier for LICs to access larger international markets
• B. By giving LICs preferential tax rates
• C. By restricting LICs from exporting
• D. By providing direct military aid

Answer: (A)

Trade rules and dispute resolution reduce barriers and give low‑income countries better access to larger international markets. The WTO promotes free and fair trade by lowering tariffs, standardizing rules, and providing a predictable environment for exporters and investors. This helps LICs diversify what they sell abroad, attract investment, and boost growth, which can narrow the development gap. The other options miss the WTO’s role: preferential tax rates are set by a country’s own policies, restricting LICs from exporting would hinder growth, and direct military aid isn’t part of the WTO’s functions.

Trade rules and dispute resolution reduce barriers and give low‑income countries better access to larger international markets. The WTO promotes free and fair trade by lowering tariffs, standardizing rules, and providing a predictable environment for exporters and investors. This helps LICs diversify what they sell abroad, attract investment, and boost growth, which can narrow the development gap. The other options miss the WTO’s role: preferential tax rates are set by a country’s own policies, restricting LICs from exporting would hinder growth, and direct military aid isn’t part of the WTO’s functions.