Which of the following statements on regional trade agreements are accurate? Check all those that apply. 4) Under the GATT, countries can enter into regional trade agreements if they do not collectively increase their tariffs on third countries. The signing of the General Agreement on Tariffs and Trade (GATT) in 1947 led to the adoption of several new trade policies. 5) Regional trade agreements are consistent with the “Most Favoured Nation” GATT principle. ——————————————————- The World Trade Organization (WTO) was created on the basis of the General Agreement on Tariffs and Trade (GATT) and has therefore inherited many of its characteristics. Nevertheless, the WTO has proven to be a very different institution. Indicate whether each result in the table below is an objective of economic sanctions or not. In 1933, American producers, who had stable relations with their foreign traders and exported nearly 75% of their production, found that their exports were only 25% of total production. What is the most likely reason for this decline in exports? Slide the PPF curve on the graph below to show the impact of economic sanctions imposed on the border with production opportunities in Iraq. 2) Countries in a customs union agree on a common tariff plan with countries outside the EU. 6) Customs unions have complex rules that determine the type of goods that can be shipped duty-free within the union.
In the following table, indicate whether each of the policies listed was a result of the GATT. Next, complete the last column by identifying the means used to implement each GATT policy. Note: Choose the end of the curve in the diagram so that the finish points are displayed. Then drag one or both points to the desired position. The dots will be in position, so if you try to move a point and it returns to its original position, drag it a little further. 1) Products can only be shipped duty-free between Canada and Mexico if most of their production is produced in North America. Relations between the goal nation and the imposing nations 3) European Union countries retain their tariffs with countries outside the EU. What would be the next consequences of the effectiveness of economic sanctions? Check all those that apply. In 1990, Western countries imposed economic sanctions on Iraq in an effort to end Iraq`s military takeover of Kuwait.
Prior to the sanctions, oil and equipment were exported internationally by Iraq. The graph below shows the limit of Iraq`s production possibilities (PPF) before the imposition of sanctions.