What is GATT and what happened to tariff rates as a result of GATT?
What will be an ideal response?
GATT is the General Agreement on Tariffs and Trade. It is an international agreement established after World War II to encourage world trade by reducing barriers and tariffs. U.S. tariff rates have fallen from over 30 percent on average to around 5 percent, although this may overstate the reduction of trade barriers since voluntary export restraints have been used in recent years.
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During the period in which the Navigation Acts guided colonial trade, international trade was safe and many countries fairly engaged in commercial trade
Indicate whether the statement is true or false
Price leadership is when one firm sets price for the industry and the others follow.
Answer the following statement true (T) or false (F)
When an input represents a small proportion of a firm's total costs, then
A) demand for the input will tend to be less elastic. B) the input demand will vary significantly with a change in input price. C) the usage of the input cannot be varied in the production function. D) output demand will be highly elastic.
In the long run, what level of economic profits can a monopolistic competitor expect to receive?
A) positive B) zero C) negative D) either negative or positive, depending on the demand for its product and its costs