Evaluation of the GATT (General Agreement on Tariffs and Trade). Regarding the Free Trade Concepts according to David Ricardo

Studienarbeit aus dem Jahr 2021 im Fachbereich BWL - Wirtschaftspolitik, Note: 1,3, FOM Essen, Hochschule für Oekonomie & Management gemeinnützige GmbH, Hochschulleitung Essen früher Fachhochschule, Sprache: Deutsch, Abstract: This thesis aims to present the GATT (General Agreement on Tariffs and Trade) and its historical background in its main features and to examine what extent the GATT corresponds to the free trade conception according to David Ricardo. Historically, free trade is still a relatively new concept. Between the 16th and 18th centuries, in the age of mercantilism, the idea of protectionism still predominated. The interstate exchange of goods is based on the assumption that the own country could make profits at the expense of its trading partners through import quotas and import tariffs. At the same time, attempts are made to support the country‘s own exports through promotional measures. This protectionist approach has left its mark until today in form of protective tariffs for example. Mercantilism is followed by the idea of liberalism and therefore the idea of free trade. Adam Smith is considered the founder of free trade theory. His model of absolute cost advantage is later developed into the model of comparative cost advantage by the economist David Ricardo.