• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The evolution of GATT, the General Agreement on Tariffs and Trade.

Extracts from this document...

Introduction

As we look at the evolution of GATT, the General Agreement on Tariffs and Trade, we must understand what GATT really is. GATT was established to break down trade barriers (in the form of tariffs, quotas, preferential trade agreements between countries, etc) to make the flow of commodities and capital less restricted by national government influence. There are many actors that play a role in how the system works. The United States assumed leadership as the worlds foremost economic and political power. The USSR wanted to play a role in jump-starting the European economy, and the U.S. was willing to help. The U.S. mindset was that by supporting trade they would be destroying Communism and eventually establishing democracy worldwide. ...read more.

Middle

But the truth is that the large, productive nations have a great deal to gain with foreign markets lowering tariffs, while poor nations have little to gain when the markets of the wealthy are already dominated by local producers, while their own markets at home are flooded by the wealthy nations. Not all large countries always benefit, the United States ran into a few problems in its attempts to aid other countries. Countries like Japan were exporting more than they were importing at a drastic rate, and were beginning to dominate the world market. In 1985 Japan was the second largest market economy in the world. Japan had a high savings rate and the U.S. ...read more.

Conclusion

It is just very difficult to predict what is going to happen, any argument can be shot down when dealing with social choice. You can predict what you think one country will do based on what they have done in the past, but you can not know for sure. An example is the soldiers dilema; when two soldiers are seperated and intrrogated thay assume that the the one will not talk and vice versa, but because they are seperated they don't actually know what the other is doing. This example just goes to show that even with the actors hoping to read the other actors, they can never really know what is going to happen, therefor there is no security in GATT or any other system, you just have to allow tha actor to pursue their own intersets and hope they coincide with yours. Jesse Hamby POSI 4359 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. World Trade Organisation was founded in 1995 and resulted from a series of General ...

    The issue evolves around the prisoner's dilemma, with individual incentives for nations to restrict trade, but a collective interest that all nations should pursue it. In general, tariffs may only further protect inefficient firms or even whole industries, countries may be better off to let those firms go bust and redeploy their resources.

  2. Where does the World Trade Organisation fit in the overall scheme of international public ...

    There is also a clamour for technical assistance (i.e. aid), and demands to boost developing country representation in the WTO Secretariat (overriding meritocratic selection criteria). At the same time, the WTO is becoming more a forum for adversarial political grandstanding and procedural nit-picking than one for effective decision-making.

  1. Does Trade Benefit Everyone?

    However just because a country does not hold comparative advantage in a good doesn't mean they won't produce it as they may have resources that are uniquely suited to that product. This leads to the theory that specialisation is never complete (Economics, Beardshaw). These theories do make many simplifying assumptions.

  2. International Trade - I have been asked to investigate the possibility of a company ...

    can get their gym to customers obviously it can not be done traditionally as this would be hard but place would still be important all the same as the gym has to be situated in an area which is busy and lots of business people go and people surround as

  1. International trade - In this case I choose the country Canada. When doing a ...

    the country and trading agreements described Canada Canada is situated in the north of America and it's divided in 10 provinces, and Ottawa is the capital city of Canada. The name Canada is derived from the Indian name 'kanata', which means "village" or "settlement". The population in July 2006 est.

  2. Explain the evolution and characteristics of the debt problems of LDCs. In the light ...

    further widening of budget deficits and balance of payments deficits in many LDCs. In order to combat this, LDCs pushed for a widening of exports of primary commodities, thus further fuelling the declining terms of trade discussed above. However, this pattern of events does not explain the full extent or nature of the build up of debt.

  1. North American Free Trade Agreement (NAFTA)

    Chapter eleven asserts them the right to challenge those same laws with a degree of ease. Another problematic issue which feeds into the undermining of democracy with regards to Chapter 11 is the lack of public access and accountability as it provides no transparent checks and balances that are common

  2. international trade

    the following assumptions hold: * The major factors of production, namely labour and capital, are not available in the same proportion in both countries. * The two goods produced either require relatively more capital or relatively more labour. * Labour and capital do not move between the two countries.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work