CIPS L5M5 Exam - Topic 2 Question 6 Discussion

Actual exam question for CIPS's L5M5 exam

Question #: 6
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 Sherrell at Nov 01, 2025, 04:33 AM

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Laurel

15 hours ago

I’m not so sure. What about A) UN? They deal with many global issues.

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Katlyn

6 days ago

I agree, WTO is the right choice. They specialize in trade disputes.

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Sylvie

11 days ago

I think it's definitely B) WTO. They handle trade issues.

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Maile

16 days ago

Totally with you, Stefan! WTO all the way!

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Eleonore

21 days ago

Really? I thought governments just sorted it out themselves.

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Stefan

26 days ago

It's B) WTO for sure, that's their main role.

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Vivan

1 month ago

I'll take B) WTO. Gotta love those bureaucrats in Geneva sorting out our global trade squabbles.

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Alaine

1 month ago

B) WTO. Duh. Unless you think countries are going to settle their trade disagreements with a game of rock-paper-scissors.

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Jesusita

1 month ago

D) None - governments must resolve disputes themselves? Yeah, right. Good luck with that. Pass the popcorn, this is gonna be fun to watch.

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Carry

2 months ago

The WTO is like the United Nations for trade - they step in when countries can't agree on who gets to keep all the toys.

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Jacinta

2 months ago

I’m not confident at all, but I feel like I read something about governments resolving disputes themselves, so maybe D is a possibility?

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Tamesha

2 months ago

I remember practicing a question about international organizations, and I think the UN deals more with broader issues rather than trade specifically.

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Cassi

2 months ago

B) WTO is the correct answer. International trade disputes are typically resolved by the World Trade Organization.

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Eloisa

2 months ago

I thought it was A) UN, they deal with international issues, right?

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Barbra

3 months ago

Definitely B) WTO, they handle trade disputes.

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Malissa

3 months ago

I’m leaning towards B) WTO because I recall it being mentioned in class as the main body for trade disputes, but I could be mixing it up with something else.

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Mitsue

3 months ago

I think the WTO is the right answer since they handle trade disputes, but I'm not completely sure.

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Anglea

3 months ago

Ugh, I'm drawing a blank on this. I know there are different international organizations, but I can't remember which one specifically deals with trade issues. I'll have to guess and hope for the best.

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Shawna

4 months ago

I'm feeling pretty confident about this one. The WTO is definitely the organization that's set up to handle international trade disputes. I'm going with B.

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Aja

4 months ago

Okay, let me think this through. The ILO deals with labor issues, so that's probably not the right answer. And I don't think governments can just resolve these kinds of disputes on their own. I'm leaning towards the WTO, but I'll have to double-check that.

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Stefania

4 months ago

Hmm, I'm not totally sure about this one. I know the UN is involved in international issues, but I'm not sure if they handle trade disputes specifically.

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Mattie

4 months ago

I think the WTO would be the best choice here. They're the main international body that deals with trade disputes.

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Becky

2 months ago

I agree, WTO is the right choice!

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