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midterm exam

explanatory Essay
670 words
670 words
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The General Agreement on Tariffs and Trade (GATT) was created in 1946, right after the conclusion of World War II. The GATT emerged as the means of promoting "free trade", which was deemed to be essential to peace. Its purpose was to persuade countries to dismantle their protectionist systems by reducing and eventually eliminating tariffs for member states. Many argue that trade between states who produce base on the idea of comparative advantages would increase global interdependence and raise the price of aggression. Thus, interdependence forces states to be cooperative with each other’s. Economic self-sufficiency is considered the cause of war. From the beginning, GATT is an institution that promotes the liberal ideas. GATT was created under the assumption that free trade will create greater welfare to the people. Thus, entities between states should be able to compete and cooperate freely, without the government intervention. Protectionism is considered inadequate for the economy because it increase the price of the product, thus promote unfair competition. After the creation of GATT, the post war period was peaceful. Trade and economic growth increased. Europe was rebuilt and caught up with the US, as did Japan. GATT achieved substantial reduction in tariffs through many round of negotiations. Personal wealth and the general well-being of the society increase as the results of free-trade, particularly in manufacturing. Competition among firms also reduces costs of products and increase consumption. Thus by reducing tariffs, GATT reinforce the liberal idea of free markets and enhance personal wealth substantially. On the other hands, GATT/ WTO eventually developed mechanism to regulate trade. This development is particular... ... middle of paper ... ...d as an institution to bring peace through prosperity to the devastated countries after the end of WWII. Throughout the year, GATT helps close the economic gap between many countries. However, with the incorporations of more countries, GATT/ WTO have contributed to the uneven distribution of income. It is clear that GATT does not help the church or its constituent further attaining, or address the question of just wage or just price. The division of wealth between developed and developing countries is the clear indication that the church have not been able to influence the government to have better public policy to address these problems. However, there are organizations by the church that is helping workers address the issues of equality. Thus, while WTO might not help the church further the attaining of its goals right now, things could be changing in the future.

In this essay, the author

  • Explains that the general agreement on tariffs and trade (gatt) was created in 1946, right after the conclusion of world war ii.
  • Explains that gatt promotes the liberal ideas. free trade creates greater welfare to the people. protectionism is inadequate for the economy.
  • Explains that gatt/wto developed mechanism to regulate trade, which is particularly a mercantilist idea.
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