Final answer:
The Bretton Woods Conference established fixed exchange rates, the gold standard pegged to the US dollar, and created both the International Monetary Fund (IMF) and the World Bank to stabilize the international economy. The WTO was later formed out of the GATT to reduce trade barriers.
Step-by-step explanation:
The basic principles of trade and finance established by the Bretton Woods Conference can be described as follows: a) Fixed exchange rates were instituted along with the creation of the International Monetary Fund (IMF) and the World Bank. The Bretton Woods Agreement set the US dollar as the global reserve currency, backed by gold, and pegged other currencies to the dollar. This system was designed to prevent competitive devaluations and ensure financial stability. The IMF's role included maintaining this parity and supporting countries with balance of payments difficulties.
Initially, the Bretton Woods Conference did not establish the World Trade Organization (WTO); it instead created the General Agreement on Tariffs and Trade (GATT), which later evolved into the WTO in 1995. The WTO aims to facilitate global trade by reducing trade barriers.
The Bretton Woods Conference was a crucial moment in economic history, which laid the groundwork for international financial institutions and trade agreements that have shaped the global economy. It emphasized the need for collective action to promote economic stability and prevent economic crises similar to the Great Depression.