CIPS L5M5 Exam - Topic 2 Question 16 Discussion

Actual exam question for CIPS's L5M5 exam

Question #: 16
Topic #: 2

[All L5M5 Questions]

An international trade dispute would be resolved by which organisation?

AUN

BWTO

CILO

DNone -- governments must resolve disputes themselves

Show Suggested Answer

Suggested Answer: B

Comprehensive and Detailed Explanation From Exact Extract of Documents:

The World Trade Organisation (WTO) is responsible for facilitating international trade agreements and resolving disputes between member states. According to the L5M5 study guide (p.87), the WTO provides a dispute settlement mechanism where countries can challenge trade barriers, tariffs, or unfair practices. The UN (A) focuses on peace, security, and development, while the ILO (C) addresses labour standards. Governments (D) do not resolve disputes independently when they are WTO members; instead, they rely on the WTO framework. Procurement professionals must understand the WTO's role, as its rulings influence trade laws, tariffs, and sourcing strategies.

Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.87

by Marylou at May 27, 2026, 01:31 PM

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