The Purpose of the General Agreement on Tariffs and Trade

question 91

Multiple Choice

The purpose of the General Agreement on Tariffs and Trade (GATT) is to

• A) facilitate global trade.
• B) create common market arrangements in specific geographical regions.
• C) negotiate an end to civil wars.
• D) establish a set of international property right laws.

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Definitions:

Full Capacity Sales

Full capacity sales refer to the maximum sales level that a company can attain with its current production capacity and resources, without additional investment.

Net Income

A company's revenue minus all its expenses and taxes equals its total income.

Fixed Assets

Long-term tangible assets used in the operation of a business and not expected to be converted to cash in the near term.

Additional Funds Needed

The extra amount of financing a company requires to fund its operations and growth beyond its current financial resources.