(In the past few days differences between the United States and the European Community on farm trade have narrowed almost to nothing. As a result the world is now close to concluding the Uruguay round of GATT talks. That deal is admittedly far
(In the past few days differences between the United States and the European Community on farm trade have narrowed almost to nothing. As a result the world is now close to concluding the Uruguay round of GATT talks. That deal is admittedly far from perfect, a series of messy compromises. The cause of free trade will have many more battles to fight. Never mind. On a conservative estimate the Uruguay round would permanently raise global welfare by more than $ 100 billion a year, spur economic growth everywhere (especially in the world’s poorest countries) and extend competition to hitherto sheltered, and therefore backward, parts of all economies. By any standards, it would be a hugely valuable achievement.)On what grounds does it say “the Uruguay round would… spur economic growth everywhere”?
【正确答案】:According to the doctrines of absolute advantage and comparative advantage, internationaltrade could help a country make better use of its advantages and thus “spur economic growth”,and the Uruguay round could promote trade between countries.
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