GATT

In the 21st century, countries have become more interdependent than in past centuries.  This means that when one country has economic troubles, it can affect other countries' economic prosperity.  For instance, a plant in China that produces toys for Mattel might have to slow down production if Mattel’s sales fall in the US due to a recession.  The plant in China might have to lay off workers and will purchase fewer supplies (which will also lower suppliers' sales), etc.  In the 20th century, economics weren’t so interdependent, and if America was having a recession or even a depression, it did not impact other countries as it would today.  In the past, countries’ economies were more independent and were not importing a large percentage of their goods to the United States.

General Agreement on Tariff (GATT)

General Agreement on Tariffs (GATT) is an international treaty that was created to reduce tariffs on imported goods so that free trade could be increased.  The World Trade Organization (WTO) was created to help enforce the GATT and other treaties that encourage free trade between member countries.