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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Answer the following statement(s) true (T) or false (F)
1. A non-congested toll road is an example of a good that is excludable, but not rivalrous in consumption. 2. Public goods can frequently be provided by private action when the resulting benefits are widespread. 3. All economists agree that a public good is one the is nonrivalrous and nonexcludable. 4. When a public goods increases the desirability of living in a certain area, benefits tend to be captured entirely by an increase in land values. 5. In a Clarke tax scheme, the amount of tax that a person pays depends, in part, on his revealed preference for the public good.
In a dynamic economy, there will always be some frictional unemployment
Indicate whether the statement is true or false
The number of firms in a perfectly competitive industry is not fixed in the long run.
Answer the following statement true (T) or false (F)
Dairy price supports result in a redistribution of welfare from consumers to dairy farmers
a. True b. False