Question

The General Agreement on Tariffs and Trade (GATT) is based on the principle of: A. establishing a single international currency. B. tariff reductions through multilateral negotiations. C. converting tariffs to import quotas. D. establishing common environmental and labor standards for all member nations.

Answer 1

B. tariff reductions through multilateral negotiations.

Step-by-step explanation:

GATT refers to General Agreement on Trade & Tariffs. The multilateral agreement was established among few countries around 1948. It aimed to promote free international trade, liberated by all trade reductant barriers - eg tariffs, quotas etc.

Later, in 1995 : GATT was reformed into WTO (World Trade Organisation). It is the intergovernmental organisation currently existing with 164 member nations. It regulates international trade of goods, services, international property rights etc between member nations. It also assists in international trade agreements negotiations, dispute settlements etc.