According to GATT,quotas are considered acceptable devises for regulating trade only where:
A) a nation is imposing a temporary safeguard to protect its balance of payments.
B) they are enacted into law by a nation's legislative body.
C) nations are engaged in a trade war.
D) a nation has first petitioned the United Nations for permission to do so.

Question

Quizplus · Accepted Answer

According to GATT (General Agreement on Tariffs and Trade), quotas are only acceptable as devices for regulating trade where a nation is imposing a temporary safeguard to protect its balance of payments. This means that quotas can only be used as a measure to address a temporary crisis such as a sudden surge of imports causing a trade imbalance. GATT does not allow the use of quotas for protectionist purposes or as a measure to restrict fair competition.

According to GATT,quotas Are Considered Acceptable Devises for Regulating Trade