General Agreement on Tariffs and Trade (GATT)

Description: This quiz will test your knowledge on the General Agreement on Tariffs and Trade (GATT), an international agreement that aimed to reduce tariffs and other trade barriers among its member countries.
Number of Questions: 15
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Tags: economics international trade gatt
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When was GATT signed?

  1. 1947

  2. 1948

  3. 1949

  4. 1950


Correct Option: A
Explanation:

GATT was signed on October 30, 1947, in Geneva, Switzerland.

What was the main objective of GATT?

  1. To reduce tariffs and other trade barriers

  2. To promote free trade

  3. To establish a common market

  4. To create a customs union


Correct Option: A
Explanation:

The main objective of GATT was to reduce tariffs and other trade barriers among its member countries, in order to promote free trade and economic growth.

How many countries were original signatories to GATT?

  1. 23

  2. 25

  3. 27

  4. 29


Correct Option: A
Explanation:

There were 23 original signatories to GATT, including the United States, the United Kingdom, and France.

What was the most significant achievement of GATT?

  1. The reduction of tariffs

  2. The elimination of quantitative restrictions

  3. The establishment of a common market

  4. The creation of a customs union


Correct Option: A
Explanation:

The most significant achievement of GATT was the reduction of tariffs among its member countries, which led to increased trade and economic growth.

What was the main criticism of GATT?

  1. It was too protectionist

  2. It was too liberal

  3. It was too bureaucratic

  4. It was too ineffective


Correct Option: A
Explanation:

The main criticism of GATT was that it was too protectionist, as it allowed member countries to maintain high tariffs on certain products.

When was GATT replaced by the World Trade Organization (WTO)?

  1. 1993

  2. 1994

  3. 1995

  4. 1996


Correct Option: C
Explanation:

GATT was replaced by the World Trade Organization (WTO) on January 1, 1995.

What are the main functions of the WTO?

  1. To administer and enforce trade agreements

  2. To provide a forum for trade negotiations

  3. To settle trade disputes

  4. All of the above


Correct Option: D
Explanation:

The main functions of the WTO are to administer and enforce trade agreements, to provide a forum for trade negotiations, and to settle trade disputes.

How many member countries does the WTO have?

  1. 164

  2. 165

  3. 166

  4. 167


Correct Option: A
Explanation:

As of 2023, the WTO has 164 member countries.

What is the most-favored-nation (MFN) principle?

  1. A principle that requires countries to treat all other countries equally in terms of trade

  2. A principle that allows countries to discriminate against certain countries in terms of trade

  3. A principle that allows countries to impose tariffs on certain products

  4. A principle that allows countries to subsidize certain industries


Correct Option: A
Explanation:

The most-favored-nation (MFN) principle is a principle that requires countries to treat all other countries equally in terms of trade, meaning that they cannot discriminate against any particular country.

What is the national treatment principle?

  1. A principle that requires countries to treat foreign goods and services the same as domestic goods and services

  2. A principle that allows countries to discriminate against foreign goods and services

  3. A principle that allows countries to impose tariffs on foreign goods and services

  4. A principle that allows countries to subsidize foreign industries


Correct Option: A
Explanation:

The national treatment principle is a principle that requires countries to treat foreign goods and services the same as domestic goods and services, meaning that they cannot discriminate against foreign goods and services.

What is the purpose of the dispute settlement mechanism in the WTO?

  1. To resolve trade disputes between member countries

  2. To impose sanctions on countries that violate trade agreements

  3. To compensate countries that are harmed by trade disputes

  4. All of the above


Correct Option: D
Explanation:

The purpose of the dispute settlement mechanism in the WTO is to resolve trade disputes between member countries, to impose sanctions on countries that violate trade agreements, and to compensate countries that are harmed by trade disputes.

What is the Doha Round of trade negotiations?

  1. A round of trade negotiations that began in 2001

  2. A round of trade negotiations that concluded in 2006

  3. A round of trade negotiations that is still ongoing

  4. None of the above


Correct Option: C
Explanation:

The Doha Round of trade negotiations is a round of trade negotiations that began in 2001 and is still ongoing.

What is the main objective of the Doha Round?

  1. To reduce tariffs and other trade barriers

  2. To promote free trade

  3. To establish a common market

  4. To create a customs union


Correct Option: A
Explanation:

The main objective of the Doha Round is to reduce tariffs and other trade barriers among WTO member countries, in order to promote free trade and economic growth.

What are the main challenges facing the Doha Round?

  1. Disagreements between developed and developing countries

  2. Disagreements between different sectors of the economy

  3. Disagreements between different countries

  4. All of the above


Correct Option: D
Explanation:

The main challenges facing the Doha Round include disagreements between developed and developing countries, disagreements between different sectors of the economy, and disagreements between different countries.

What is the future of the WTO?

  1. The WTO will continue to play an important role in promoting free trade

  2. The WTO will be replaced by a new international trade organization

  3. The WTO will be abolished

  4. None of the above


Correct Option: A
Explanation:

The WTO is likely to continue to play an important role in promoting free trade in the future, as it is the only global organization that brings together all major trading countries.

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