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ID number:322857
Evaluation:
Published: 01.12.1996.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

Trade, while complex and dynamic, is a vital tool for the development of a country's economy. For several years in the aftermath of World War II, nations around the world were busy rebuilding and creating prosperous economies. It was determined during this period that it was important to setup an international body whose sole objective was to arbitrate trade disputes through peaceful negotiations; therefore, the General Agreement on Tariffs and Trade (GATT) was created in 1947. During the post-WW II period of expansion, the economies of western countries grew in leaps and bounds. This was made possible due to efficient uses of resources during peacetime. At the same time, the world saw severe divisions both militarily and politically. Nations were divided between two super blocs; NATO led by the United States of America and The WARSAW Pact led by the former USSR. Western countries continued to progress while several countries in Africa, Eastern Europe and Asia failed to achieve the same levels of expansion. This created an economic polarization which stimulated the assessment of the current practices. GDP and per-capita GDP of developed countries were significantly high compared to developing countries. There was a growing need for countries to engage in worldwide trade.…

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