Pressures for greater protectionism increased around the world during

QUESTION

Pressures for greater protectionism increased around the world during the 1980s and early 1990s due to the strain caused by the persistent trade deficit in the world’s largest economy, Japan.

Indicate whether the statement is true or false.

ANSWER

FALSE
During the 1980s and early 1990s, the world trading system erected by the GATT came under strain as pressures for greater protectionism increased around the world. There were several reasons for the rise in such pressures during the 1980s. For instance, the world trading system was strained by the persistent trade deficit in the world’s largest economy, the United States.