International Economic Problems

Read the article: Understanding the World Trade Organization. Posted in Blackboard.

1. Describe how the GATT and WTO have helped to free international trade. Also, what has been the mechanism to accomplish that objective?

2. Explain how a multilateral trading system can help to create a stable and predictable environment and why this is important.

3. Explain the factors in favor of an open trading system based on multilaterally agreed rules.

4. What are the successes and challenges that the General Agreement of Tariffs and Trade (GATT) faced during its existence?

5. What are the temptations or possible reasons to impose protective barriers with the idea of preventing the challenge of competitive imports?