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Submitted By francesko
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London Southbank University

Multinational Firms and Global Trade
Multilateral Trade Liberalisation

Nigel Grimwade

Critically examine the achievements/failings of the rules based system of world trade that came into being with signing of GATT.

Name: Francesko Xhaferaj Student ID: 3117098

Introduction
The international free trade system which exists today was in large part developed due to the experience of the economic crisis of the 1930s and the Second World War. This was a protectionist era in which nations placed high trade barriers mainly in the form of tariffs, to protect their own industries, completely ignoring the benefits of comparative advantage and free trade. The prevailing belief after the Second World War was that national policies, preventing international trade were the major reason behind the economic downfall in the 1930s and to prevent a return of the depression, the US envisioned a global system to facilitate freer trade and political stabilisation. It was for these reason that that the general agreement on tariffs and trade otherwise known as GATT came into being.
The purpose of this report is to identify the achievements of the GATT and how countries have benefited from the multilateral trading system it help to create. The report will look the challenges they have encountered, such as the grey area measures and how that lead countries to discriminate against one another. Furthermore it will look at the problem of agriculture and why this sector was treated differently to other sectors.

The GATT Framework
The GATT was established in 1947 by 23 nations in Geneva. It contained 38 articles and aimed to serve 2 main purposes. Firstly its aim was to

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