Chapter 6 Flashcards
(9 cards)
1
Q
What did U.S. Tariff polices before 1930 look like?
A
- aimed at generating revenue, especially federal revenue
2
Q
Smoot Smoot-Hawley Act of 1930 did what?
A
-Worsened the great depression, raised avg tariffs to 53%
-Recieved retaliation from 25 trade partners and a collapse in global trade
3
Q
The reciprocal trade agreements act (1934) did what?
A
- Shifted trade negotiating authority to the president
- Promoted trade liberalization and tariff reduction
- Introduced the MFN principle
4
Q
The general agreement on tariffs and trade (GATT) did what?
A
- Signed in 1947 to reduce trade barriers and create fairer trade
- Became the foundation for multilateral trade policy
- No discrimination between domestic and foreign goods
- Binding commitments for transparency
5
Q
World Trade Organization 1995 did what?
A
- expanded GATTs princples to cover services, intellectual property, and investment
- WTO is the legal and institutional foundation of global trade (covers 164 nations, 97% of global trade)
6
Q
Trade adjustment assistance (TAA) does what?
A
- Offers support to workers, firms, and farmers harmed by import competition
- Includes cash payments and job retraining
7
Q
What are trade and financial restrictions used to pressure nations?
A
- Trade sanctions: boycotts, quotas
- Financial sanctions: aid restrictions, credit limitations
8
Q
Why do BRIC nations challenge U.S./EU norms?
A
- They favor protecting key domestic sectors (fear of job loss and foreign dominance)
- Want a more equal global system
9
Q
What do the U.S. and China prioritize differently?
A
- The US prefers agreements with strong labor/ environment rules
- China and others emphasize pure tariff reduction
