The General Agreement on Tariffs and Trade (GATT)was Initiated in Response

question 34

Multiple Choice

The General Agreement on Tariffs and Trade (GATT) was initiated in response to

• A)in increase in exports of low-priced goods from developing countries to developed countries.
• B)the replacement of manufacturing jobs with service jobs in developed countries.
• C)economic dislocations caused by the North American Free Trade Agreement (NAFTA)in the 1990s.
• D)high tariffs imposed during the Great Depression of the 1930s.

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Definitions:

Dominant Strategies

In game theory, a strategy is considered dominant if, regardless of what any other players do, the strategy earns a player a larger payoff than any other.

Joint Profits

The combined profits earned by two or more firms when they cooperate on a project or merge their operations.

Tacit Price Agreement

An unspoken understanding among competitors to set prices at a certain level without explicit communication.

Kinked Demand Curve

A demand curve in oligopoly market structures, characterized by a distinct bend or kink, indicating different elasticity above and below the current price.