Trade Policy and Agreements (Try it out & self-check)

Tariffs have been greatly reduced over time by ________.

decades of GATT agreements

The General Agreement on Tariffs and Trade (GATT) helps promote trade by

decreasing quotas

Dumping is the act of selling a product for a price below its cost of production, but is hard to determine because ________.

determining the actual costs is difficult

A common complaint regarding trade policy is the act of ________.

dumping

Economists have concerns about regional trade agreements because ________.

it may inhibit trade outside the regional agreement

The role of the World Trade Organization (WTO) is to succeed GATT, encourage trade disputes, and ________.

lower barriers to trade

In 1995, the General Agreement on Tariffs and Trade (GATT) was transformed into ________.

the World Trade Organization (WTO)

Which of the following best fits an explanation of why the World Trade Organization (WTO) was established?

Bring all sizes of nations together to negotiate trade deals between each other. Check Answer

What United States government department determines if imports from other countries are being traded fairly?

Department of Commerce

An example of a regional trade agreements is ________.

NAFTA

Which regional trade agreement includes Canada, Mexico, and the United States?

NAFTA

Why are some economists who favor free trade concerned about the proliferation of regional trade agreements?

Regional trade agreements may limit trade from outside the regions in an agreement.

The General Agreement on Tariffs and Trade (GATT) evolved from the overuse of protections on over 20,000 goods being internationally traded under the ________.

Smoot-Hawley Bill

What is the General Agreement on Tariffs and Trade (GATT) role?

To negotiate agreements between trading nations in order to reduce barriers to trade.

The precursor to the World Trade Organization (WTO) was the ________.

General Agreement on Tariffs and Trade (GATT) Check Answer