Final answer:
The beginning of the reduction or elimination of tariffs in the 1880s initiated the era of trade liberalization and led to the creation of GATT. Significant decreases in tariff rates over the years, complemented by technological advancements, have greatly facilitated the expansion of international trade.
Step-by-step explanation:
The reduction or elimination of tariffs to promote trade that began in the 1880s was the beginning of the movement towards trade liberalization, leading to the establishment of the General Agreement on Tariffs and Trade (GATT). Over time, the average level of tariffs on imported products charged by industrialized countries dramatically decreased from 40% in 1946 to less than 5% by 1990. The negotiations under GATT, which initially focused on tariff reduction, expanded to a broader agenda once tariffs reached substantially lower levels.
U.S. tariffs also followed this trend, decreasing to less than 2% by the end of the 20th century. Along with the reduction of government-created barriers like import quotas and non-tariff barriers, technological advancements in transportation, communication, and information management further facilitated the ease of international trade. This convergence of policy changes and technological improvements has contributed to a significant increase in global trade.