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Chapter 8: Problem 13

Most cconomists and people in the business community supported the establishment of (1.07) a) both NAFTA and GATT b) neither NAFTA nor GATT c) NAFTA but not GATT d) GATT but not NAFTA

Short Answer

Expert verified
Most economists and people in the business community supported the establishment of both NAFTA and GATT (answer A), as these agreements promote free trade, economic growth, and the efficient allocation of resources.

Step by step solution

01

Understand NAFTA and GATT

Before selecting the correct answer, it's essential to understand what NAFTA and GATT are: 1. NAFTA (North American Free Trade Agreement): A trade agreement established between the United States, Canada, and Mexico to eliminate trade barriers and promote economic integration in North America. 2. GATT (General Agreement on Tariffs and Trade): An international trade agreement aimed at reducing tariffs, trade barriers, and providing a common framework for international trade rules.
02

Analyze the Opinions of Economists and People in the Business Community

Most economists and people in the business community are generally in favor of free trade agreements because they support the efficient allocation of resources, promote economic growth, and provide consumers with a greater variety of goods and services. Consequently, they would likely support the establishment of both NAFTA and GATT, as both of these agreements aim to facilitate trade and lower tariffs.
03

Choose the Correct Answer

Based on the understanding of NAFTA and GATT, and the opinions of economists and people in the business community, the correct answer is: A) Both NAFTA and GATT As both agreements align with the general consensus among economists and people in the business community to support the establishment and promotion of free trade to enhance economic growth and efficiency.

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Most popular questions from this chapter

The main criticism Joseph Stiglitz levels at the IMF is that (LO7) a) it provides too many loans that are not repaid b) it no longer promotes economic growth, but rather contraction c) it does not provide enough loans d) it does not sufficiently promote the market system

Today world trade is regulated by (1.07) a) NAFTA c) WTO b) GATT d) \(\mathrm{EU}\)

Which one of these statements best describes the complaints of the protesters at meetings of the WTO, IMF, and World Bank? (LO7) a) They opposed military aid to Third World dictatorships. b) They opposed trade with poor countrics because of the exploitative nature of that trade. c) They opposed free trade with nations whose people worked under sweatshop conditions and opposed ceding national sovercignty to an international group. d) They opposed strict environmental standards, which they felt would increase our cost of living.

Which statement is true about the European Union? (L.O7) a) It has not taken in any new member nations since its formation. b) All of its members must use the euro as its official currency. c) It is essentially a free trade area. d) It has been basically a failure.

Which was NOT an argument of the protesters against the IMF, WTO, and World Bank? (LO7) a) We are exploiting factory workers in poor countrics. b) Our subsidized grain exports are sold below cost in poor countries, driving local farmers out of business. c) Globalization is hurting the American standard of living. d) Glohalization is lowering American wages and cxporting high-paying jobs.
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