The General Agreement on Tariffs and Trade is an international agreement
A) that outlaws all tariffs but permits quotas.
B) to encourage world trade by lowering tariffs and other trade barriers.
C) to encourage world trade by lending resources to developing countries.
D) between the United States and Japan that has never been ratified, resulting in several trade wars with Japan.

Question

Quizplus · Accepted Answer

The General Agreement on Tariffs and Trade (GATT) was established in 1947 with the purpose of reducing barriers to international trade, including tariffs, quotas, and other trade barriers. Its goal was to promote economic growth and increase international trade between member countries. Although it has since been replaced by the World Trade Organization (WTO), its principles and agreements continue to influence trade policy today. Option A is incorrect because GATT did not outlaw all tariffs, but rather sought to reduce them. Option C is also incorrect because GATT did not lend resources to developing countries, but rather promoted trade liberalization among its member countries. Option D is incorrect because GATT was a multilateral agreement signed by numerous countries, not just the United States and Japan.

The General Agreement on Tariffs and Trade Is an International