What is a multilateral trade pact? Discuss the first one that was formed and what its impact has been.
What will be an ideal response?
A multilateral trade pact is a group of countries that agree to reduce trade barriers and promote free trade among its members. The first multilateral free-trade pact was the 1947 General Agreement on Tariffs and Trade or GATT. The initial 23 GATT members agreed to reduce trade barriers and give all member nations equal access to their domestic markets. As a result, average tariff rates fell significantly. In 1994, 117 nations signed the GATT pact. Ultimately all member nations benefit from reduced prices and more competition.
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A Minnesota snowmobile dealer lowers its prices in February by 16 percent and the quantity demanded increases by 2 percent. Thus the demand for snowmobiles from this dealer is ________ and the dealer's total revenue will ________
A) elastic; increase B) elastic; decrease C) inelastic; increase D) inelastic; decrease E) unit elastic; decrease
What is the Coase theorem? What conditions need to be present for this theorem to work?
What will be an ideal response?
A productivity growth slowdown can be shown as year-to-year fluctuations of real GDP around potential GDP
Indicate whether the statement is true or false
While using an outward-oriented development strategy, the government in Taiwan did not make any attempt to stimulate exports
a. True b. False Indicate whether the statement is true or false