Since the end of World War II, the General Agreement on Tariffs and Trade (GATT) negotiations have resulted in a dramatic growth in world trade largely due to A. the elimination of the most favored nation principle B. a steady increase in tariffs imposed upon developed countries C. bilateral trade negotiations D. a substantial reduction of tariffs E. the establishment of higher quotas for developing nations
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Step 1: The General Agreement on Tariffs and Trade (GATT) negotiations have been in place since the end of World War II to promote international trade by reducing barriers such as tariffs. Show more…
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Based on what we know about the economic impact of tariffs and quotas, which of the following is a historically flawed reason for a government to have restrictive trade policies? When concerns over human rights and the environment are used to increase tariffs. When a country becomes convinced that its trading partners are engaging in dumping or currency manipulation. When the value of the dollar fluctuates compared to foreign currency. When a government has decided that it needs to eliminate a balance of trade deficit with another nation. All of the above. The passage of NAFTA in 1994 led to an increase in exports between the U.S., Canada, and Mexico. As a result, total job creation in each nation increased and wages for American factory workers decreased. This is one reason why economists have not supported President Biden's recent executive order requiring government agencies to "Buy American." The post-World War II period represented the revenue era in U.S. tariff policy. This led to job creation and a healthier economy. 1930 was the year the Smoot-Hawley bill passed.
Akash M.
After World War II, the US economy began a sustained period of economic growth. Most economists attribute this growth to increased international trade, pent-up domestic demand, and the creation of derivative investment vehicles, specifically collateralized debt obligations. Roosevelt's pricing policies, especially the control of precious metals, the development of consumer products, the New Deal's income-support programs, easier availability of credit, consumer banking reform, vastly expanded international trade, and a rapid increase in population. Conservative monetary policy after the historic aberration of Roosevelt's "soft socialism.
Evaluate the following statements: a. Protective tariffs reduce both the imports and the exports of the nation that levies tariffs. b. The extensive application of protective tariffs destroys the ability of the international market system to allocate resources efficiently. c. Unemployment in some industries can often be reduced through tariff protection, but by the same token inefficiency typically increases. d. Foreign firms that "dump" their products onto the U.S. market are in effect providing bargains to the country's citizens. e. In view of the rapidity with which technological advance is dispersed around the world, free trade will inevitably yield structural maladjustments, unemployment, and balance-of-payments problems for industrially advanced nations. f. Free trade can improve the composition and efficiency of domestic output. Competition from Volkswagen, Toyota, and Honda forced Detroit to make a compact car, and foreign imports of bottled water forced American firms to offer that product. g. In the long run, foreign trade is neutral with respect to total employment.
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