Answer the following statements true (T) or false (F)

Question

1. Tariffs are common today and still growing in number since they have a long history of successfully protecting jobs in this country. 
2. As a result of recent negotiations, the General Agreement on Tariffs and Trade (GATT) is expected to supersede the WTO by 2015. 
3. The organization that assists in smoothing the flow of money between nations is the International Monetary Fund. 
4. Recently, the International Monetary Fund has had a high-profile role in assisting some weaker European countries, including making loans to Greece, Portugal, and Ireland. 

Answer 1

1. FALSE
In the 1920s, the institution of tariff barriers did not so much protect jobs as depress the demand for goods and services, thereby leading to the loss of jobs anyway, and the massive unemployment of the Great Depression of the 1930s. As a result of this lesson, after World War II the advanced nations of the world began to realize that if all countries could freely exchange the products that each could produce most efficiently, this would lead to lower prices all around. Thus began the removal of barriers to free trade.
2. FALSE
The World Trade Organization (WTO) is designed to monitor and enforce trade agreements. WTO succeeded GATT as the world forum for trade negotiations in 1995 and has the formal legal structure for deciding trade disputes.
3. TRUE
The International Monetary Fund (IMF) is designed to assist in smoothing the flow of money between nations.
4. TRUE
The International Monetary Fund (IMF) is designed to assist in smoothing the flow of money between nations. In recent times, the IMF has become more high profile because of its role in trying to shore up some weaker European economies, including making loans to Greece, Portugal, and Ireland and considering how to assist Italy and Spain.