Discussion Responses Required - 10 to 12 Hours at the Maximum
Running head: Individualism vs. Collectivism 1
Individualism vs. Collectivism 2
Individualism vs. Collectivism 3
Individualism vs. Collectivism
Liberty University
BUSI 604-B14
1. Key Term and Why You Are Interested in It
I am interested in the key term General Agreements on Tariffs and Trade (GATT) because it was one of the first items to bring together the world with trade after World War II. This is interesting because that time must have had tension and it would be interesting to see how the GATT may have been affected by that.
2. Explanation of the Key Term
According to Satterlee (2014), the General Agreement on Tariffs and Trade (GATT), was created by the Brenton Woods Conference as a plan for world economic recovery post World War II. Historically speaking, the GATT was developed through international trade theories including mercantilism. The main purpose of the GATT was to bring down barriers which prevented international trade. This agreement remained until the Uruguay Round and Marrakesh Declaration in 1995. The General Agreements on Tariffs and Trade is widely regarded as the precursor to the World Trade Organization (WTO). One distinct difference between the two was that the GATT was created with physical goods and trade, whereas the WTO focused on intellectual property (IP) and trade-in services.
3. Major Article Summary
The article, A Review on General Agreement on Tariffs and Trade (GATT) (Kiani, 2014), goes beyond the basic information of the GATT and discusses items which were exempt from the agreement. Other items include the categories of countries within the general agreement on tariffs and trade, and further discussion of Iran’s membership process. The GATT was signed by 23 countries in 1947, and contains thirty-seven articles plus additional lists and appendixes. It was originated after World War II from negotiations around international trade. At that time, the primary countries involved were the United States, Canada, and England. When the 23 (mostly developed and industrial) countries signed, there were some major goals made by the GATT. These were to form an international trade organization, raise the living standards of participating countries, move towards full employment by developing global trade, increasing incomes and demand, efficient use of global resources, and development of international production (and trade) (Kiani, 2014). Exemptions on the agreement were textiles and agriculture. The GATT went through eight different rounds of trade negotiations. The first round began in 1974 and lasted 7 months. The two most well-known are the final two rounds, the Tokyo round, which lasted 74 months and approved tariff reductions of approximately $300 billion USD. The eighth round, the Uruguay round was the final round which led to discussion of intellectual property among other discussion. This final round led to the end of the forty-seven year GATT, and the establishment of the World Trade Organization (WTO). There are four categories of countries involved in the GATT, the United States, European, CAIMRS (includes Canada, Australia, Argentina, India, New Zealand), and Developing countries. One country which did not join the GATT was Iran due to not being prepared to have full involvement, opposition of Unites States leadership, and changes to agriculture that were not feasible.
4. Discussion
a. The article discusses how the GATT was formed after World War II and the countries involved. One point that was highlighted is that most countries were already in decent economic circumstances and were industrialized. In addition, the article paraphrases each round of negotiations that occurred during the time of the GATT. These all occurred in Europe (most rounds occurred in Switzerland) and ranged in timeframe from 5 months (rounds two and four), to the 74 month round 8. The General Agreement of Tariff and Trade is regarded as the precursor to the world trade organization because that is what created it. Another principle within the GATT not as discussed is non-discrimination and equal treatment. While countries, particularly those in the developing countries segment, did have complaints during the time of GATT this principle remained in-tact. The monetary systems in developing countries can be drastically different than that of industrialized countries.
b. The cited work relates to the article, The Uruguay Round: An Unfinished Symphony by a further in depth analysis of the final round of GATT negotiations, the Uruguay Round. This article brings in doubts of how intellectual property could be integrated into the General Agreements on Tariffs and Trade. It hints that a new organization or body could be necessary in the near future. (Ostry, 1991)
The cited work relates to the article, GATT and After, as it relates to the transition from GATT to the World Trade Organization. There was emphasis on the improvement to be seen in areas like textiles, agriculture, and services (Cable, 1994).
The cited work relates to the article, General Agreement on Tariffs and Trade (GATT), offers a concise summary of the Uruguay Round. This final round brought upon agreement to create the World Trade Organization to replace the GATT agreement. It was a revision of the dispute settlement system (Blackhurst, 2009) and continued liberalization of tariffs and non-tariff restrictions.
The cited work relates to the article, A Re-Examination of the Effect of GATT/WTO on Trade, goes into depth of the effectiveness of the agreement. “WTO membership increases the extensive margin of exports by 25 % whereas it has a negative impact on the volume of already-traded goods, reducing the intensive margin by 7 %.” (Salvador, 2016).
5. References
Blackhurst, R. (2009). General Agreement on Tariffs and Trade (GATT). The Princeton Encyclopedia of the World Economy, 521-523. Retrieved from https://search-proquest-com.ezproxy.liberty.edu/docview/189251440/fulltextPDF/98222F8FB39B48EAPQ/52?accountid=12085
Cable, V. (1994). Gall and After. World Today, 50(2), 26. Retrieved from https://search-proquest-com.ezproxy.liberty.edu/docview/1294531411/fulltextPDF/98222F8FB39B48EAPQ/1?accountid=12085
Gil-pareja, Salvador (2016). A Re-Examination of the Effect of GATT/WTO on Trade. Open Economic Review. 27:561–584 DOI 10.1007/s11079-015-9385-5 https://search-proquest-com.ezproxy.liberty.edu/docview/1792708367/1DF544EFA5BA42F7PQ/27?accountid=12085
Kizil, C., Eddy, V., Clary, L., & Crowell, K. (2013). Hershey's entry to the Australian market with a new brand: An accounting and marketing perspective. Emerging Markets Journal, 3(2), 97. doi:http://dx.doi.org.ezproxy.liberty.edu/10.5195/emaj.2013.43 http://liberty.summon.serialssolutions.com/#!/search?bookMark=ePnHCXMw42JgAfZbUxnAa8xBR5fop-YmZoHWUBnrmRgzMXAC6xgLYB40sGABs0Hj-0YRHLBhEVALwNLAgpMhyQO0jje1Ur1YwRV0xYZCSb4CsEmkgBgCUPAF7wtWAA1YKiQqAAsFBSdg-Z5ipeCYp4C4a0EBKARVCuIFIPYwcjMou7mGOHvowgrheGj8FceDpjyBKRs0qUicKgCKJEj3
Ostry, Sylvia. (1991). The Uruguay Round: An Unfinished Symphony. Finance & Development 16. https://search-proquest-com.ezproxy.liberty.edu/docview/209397718/fulltextPDF/6FF48F4E04924AF1PQ/11?accountid=12085
Kiani, Esmaleri. Strategic Management Journal, 35(11), 1626-1644. doi:10.1002/smj.2173 http://go.galegroup.com.ezproxy.liberty.edu/ps/i.do?p=AONE&u=vic_liberty&id=GALE|A375288285&v=2.1&it=r&sid=summon&authCount=1
Satterlee, B. (2014). Cross Border Commerce: With biblical worldview application (2nd ed.). Raleigh, NC: Synergistics International, Inc. ISB: 9781934748121.