Page 262 - International Marketing

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264 International Marketing BRILLIANT'S

Managing Director, a council and a staff with its headquarters in Washing-
ton, USA. There are Adhoc and standing committees appointed by the
Board of Governors and Executive Board. There is also an Interim Com-
mittee (Now the International Monetary and Financial committee – IMFC)
appointed by the Board of Governors. The Board of Governors and the
executive Board are decision making organs of the Fund. They exercise
powers and take decisions that are binding on members and the fund. It is
composed of one Governor and one alternate Governor appointed by each
member. Normally, a member appoints its minister of finance or the Gov-
ernor of its Central Bank and its Governor. The alternate Governor can
participate in the meetings of the Board but has the power to vote only in
the absence of the Governor. 
GENERAL AGREEMENT OF TRADE AND TARIFF
(GATT)
Q.42. Write a short note on: GATT. [MBA (FT) 2007, 06, 05, 04]
OR
What do you mean by GATT?. Discuss the objectives, func-
tions and main provisions of GATT.
The origin of GATT can be traced to the US government's proposals
for the Expansion of World Trade and Employment Published in Decem-
ber 1945. These proposals covered a wide range of topics in the area of
commercial policy; tariffs; preferences, quotas and licensing systems,
restrictive business practices, etc.
In international trade, predictability of rules and regulations governing
import, standards tariffs, customs procedures and so on, are absolutely
necessary if there is to be orderly growth of trade. Realising that trade
would suffer if there is no stability, leading trading nations entered into the
General Agreement on Tariffs and Trade (GATT) in 1947-48 to ensure
orderly and transparent international trade.
GATT is a multinational treaty that was signed in 1948 by 102 coun-
tries with the objective of bringing down tariff and non-tariff barriers to inter-
national trade. Until 1994, the main concerns of GATT were to check
'dumping' and unethical business practices. The Uruguay Round Agree-
ments of GATT (held during 1986 to 1994) envisaged an increase in the
coverage of the legal provisions and establishment of an institution called
the World Trade Organization (WTO).
GATT–The Twenty Three Original Signatories: Australia, Belgium,
Brazil, Burma, Canada, Ceylon, Chile, China, Cuba, Czechoslovakia,
France, India, Lebanon, Luxembourg, Netherlands, New Zealand, Nor-