Why Did Countries Support China's Ascension into the WTO,despite Its

question 23

Multiple Choice

Why did countries support China's ascension into the WTO,despite its centrally planned economy?

• A)They believe China would change the rules of the WTO to be more in favor of developing countries.
• B)China would be more likely to care about trade disputes than it had previously.
• C)China would be less willing to challenge the existing economic system if and when it became powerful.
• D)China has promised to limit its abuse of human rights if it could join.
• E)It was thought likely that China was going to democratize in the short term if it joined the WTO.

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Definitions:

Variable Costs

Expenses that change in direct proportion to the amount of production or the volume of sales.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance expenses.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including charges like lease payments, wage bills, and insurance fees.

Net Income

The total profit of a company after all expenses, including taxes and operational costs, have been deducted from total revenue.