Repeated interactions iteration httpwwwbbccomnewsuk

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repeated interactions (iteration) 23 linkages “ You scratch my back, I’ll scratch yours” Reciprocity: “I do something for you and you do something for me” Diffuse Reciprocity: It is when someone does something for you, but you don’t do something that is Identical to what they have done for you Most favored Nation Status (MFN)
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A guarantee that signatories will extend favorable trade agreement terms made with third parties to favorable nations GATT (General Agreement on Tariffs and Trade): an international institution created in 1948 in which member countries committed to reduce barriers to trade and to provide similar trading conditions to all other members in 1995, the GATT was replaced by the World Trade Organization (WTO) created as one of the original Bretton Woods institutions ( The Bretton Woods Institutions are the World Bank , and the International Monetary Fund ( IMF ). They were set up at a meeting of 43 countries in Bretton Woods, New Hampshire, USA in July 1944. Their aims were to help rebuild the shattered postwar economy and to promote international economic cooperation) oversaw a dramatic liberalization of trade relations, in particular among developed countries GATT members had come to believe that the GATT’s somewhat loose structure was insufficient in an environment in which almost all countries--developing, developed, and formerly centrally planned--were joining the international trading system WTO(World Trade Organization): an institution created in 1995 to succeed the GATT and to govern international trade regulations the WTO encourages and polices the multilateral reduction of barriers and trade, and it oversees the resolution of trade disputes more structured, more encouraging of the expansion of an open international trading system than GATT both organizations had been to organize a series of “rounds” during which member states negotiate multilateral reductions in trade barriers balances the dollar value to concessions which are then automatically extended to all other member states under the MFN rule (Most favoured-nation (MFN) Rule- countries cannot discriminate between their trading partners) negotiations are dominated by the largest trading states The United States The European Union--which negotiates as a single actor in the WTO Japan power comes in part from their ability to set the agenda for negotiations because they have more attractive outside options they can more easily contemplate “going it alone” without the WTO developing countries have found it difficult to get their concerns onto the international trade agenda The WTO monitors a country’s compliance members must report actions taken under the safeguards clause
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countries that believe that foreign exporters or importers are not complying with the rules can file a complaint with the WTO
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