Suppose a Newly Formed African Country Wanted to Join GATT

question 121

Multiple Choice

Suppose a newly formed African country wanted to join GATT and thus be treated the same as other GATT members.What GATT principle is the new country interested in receiving?

• A) Free trade
• B) Importation/exportation
• C) The Tokyo Round
• D) Foreign-exchange control
• E) Most-favoured-nation status

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Definitions:

Trade Surpluses

Trade surpluses occur when a country's exports exceed its imports over a given period, indicating a net inflow of domestic currency from foreign markets.

Savings Rate

The proportion of income that is saved rather than spent on goods and services.

Trade Deficit

Occurs when a country's imports exceed its exports during a given time period, leading to an outflow of domestic currency to foreign markets.

Underwood Tariff

An early 20th-century legislative act that substantially reduced tariffs in the United States, aimed at lowering consumer costs and promoting free trade.