(a) Examine the debate that took place in the World Trade Organisation for the developing countries.

(i) Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers.

(ii) WTO rules have forced the developing countries to remove trade barriers.

(iii) An example of this is the current debate on trade in agricultural products.

b) Examine the steps taken by the Central and State Governments in India to attract foreign companies to invest in India.

(i) Special Economic Zones (SEZs) are being set up.

(ii) SEZ are to have world class facilities- electricity/water/roads/transports/ Storage/recreational/educational facilities.

(iii) Companies who set up production units in the SEZs do not have to pay taxes for an initial period.

(iv) Government has also allowed flexibility in the labour laws to attract foreign investment.

(v) Companies are allowed ‘flexibly’ to hire workers for short period.