Term
|
Definition
| Rules and organizations that govern and constrain behavior |
|
|
Term
|
Definition
| Written sets of rules that explicitly state what is and is not allowed |
|
|
Term
|
Definition
| Customs or traditions that define appropriate behavior, but without legal enforcement |
|
|
Term
| Primary Trade/Development Institution Types (5) |
|
Definition
Commodity Organizations
Resource Management Agencies
Development Funds
Regional Trade Agreements
Global Trade/Development Organizations |
|
|
Term
| The Five Primary Institution Types |
|
Definition
1. Commodity or industry-specific organizations
2. Commissions and agencies for managing shared resources
3. Development funds and banks
4. International trade agreements involving a few nations (regional trade alliances or trade blocs)
5. Global organizations for trade, development, and macroeconomic stability |
|
|
Term
| Examples of Commodity or industry-specific organizations |
|
Definition
Oil Producing and Exporting Countries (OPEC)
International Telecommunications Union (ITU)
International Sugar Organization
International Lead and Zinc Study Group |
|
|
Term
| Examples of Commissions and agencies for managing shared resources |
|
Definition
International Boundary and Water Commission (IBWC)
Lake Chad Basin Commission
Mekong River Commission |
|
|
Term
| Examples of Development funds and banks |
|
Definition
Inter-American Development Bank (IDB)
North American Development Bank (NADBank)
Asian Development Bank
Islamic Development Bank |
|
|
Term
| Examples of International trade agreements involving a few nations (regional trade alliances or trade blocs) |
|
Definition
North American Free Trade Agreement (NAFTA)
US-Israel Free Trade Agreement
Mercado Común del Sur (MERCOSUR)
Asia-Pacific Economic Cooperation (APEC) |
|
|
Term
| Examples of Global organizations for trade, development, and macroeconomic stability |
|
Definition
International Monetary Fund (IMF)
World Bank
World Trade Organization (WTO) |
|
|
Term
| When and where was the Bretton Woods conference held? |
|
Definition
| July 1944 in Bretton Woods, NH |
|
|
Term
| Who were the founding fathers of Bretton Woods? |
|
Definition
| John Maynard Keynes and Harry Dexter White |
|
|
Term
| After what war was Bretton Woods held? |
|
Definition
|
|
Term
| Who came to Bretton Woods? Why did they meet? |
|
Definition
| Representatives from 44 nations meet to consider the post-war financial system, currency stability, post-war reconstruction, and worldwide development |
|
|
Term
| What was the outcome of Bretton Woods? |
|
Definition
| Resulted in the creation of the International Monetary Fund (IMF) and the IBRD, a precursor of the World Bank |
|
|
Term
|
Definition
International Monetary Fund: Monitors the world's economies, lends to members in economic difficulty, and provides technical assistance
IMF is not a bank and not an org. to help the poor; they are there to help countries who are experiencing financial crisis |
|
|
Term
| Where does the IMF get money? |
|
Definition
| Gets money from "dues" or quota from developed member countries |
|
|
Term
| Why would the US pay money to IMF? |
|
Definition
| In our best interest that the world economy does not crash |
|
|
Term
| Did every delegation present at Bretton Woods go on to join the Fund or the Bank? |
|
Definition
|
|
Term
| How is each member country's IMF quota determined? |
|
Definition
| The larger a country's output and trade, the larger the quota |
|
|
Term
| How many IMF member countries are there? |
|
Definition
|
|
Term
| What is the World Bank and what does it provide? |
|
Definition
| A source of financial and technical assistance to developing countries around the world. Provides low-interest loans, interest-free credits and grants to developing countries. |
|
|
Term
| Is the World Bank an actual bank? |
|
Definition
|
|
Term
| What are some examples of areas that the World Bank provides assistance in? |
|
Definition
| education, health, public administration, infrastructure, financial and private sector development, agriculture and environmental and natural resource management |
|
|
Term
| How many World Bank member countries are there? |
|
Definition
|
|
Term
| What World War I implications led to the Bretton Woods conference? |
|
Definition
| There was very little trade during the 1930s |
|
|
Term
| What is a development bank? |
|
Definition
| Give loans to people/countries that can't get them to raise their standard of living |
|
|
Term
|
Definition
| General Agreement on Tariffs and Trade: an agreement (NOT an institution) on tariffs and trade rules that has been very successful in gradually bringing down trade barriers |
|
|
Term
| When was the GATT signed? |
|
Definition
|
|
Term
| How many nations signed the GATT? |
|
Definition
|
|
Term
| Which items/industries were initially intentionally ignored by the GATT? Why? |
|
Definition
| agriculture, textiles, apparel, and services; because they were mostly from developing countries |
|
|
Term
| What impact (if any) have low US interest rates had on other countries? |
|
Definition
|
|
Term
| What were the 3 key outcomes from Bretton Woods? |
|
Definition
| IMF, World Bank (originally IRBD), GATT |
|
|
Term
|
Definition
| If simple economic reforms such as a cut in the value of the currency, or limits on the central bank's creation of credit, are insufficient to solve the problem permanently, then the IMF usually requires a borrower to make fundamental changes in the relationship between gov't and markets in order to qualify for IMF funds. |
|
|
Term
|
Definition
| The GATT functions through a series of trade rounds in which countries periodically negotiate a set of incremental tariff reductions |
|
|
Term
| What characterized the Kennedy Round (mid-1960s) and the Tokyo Round (1970s)? |
|
Definition
| Trade rules other than tariffs began to be addressed, including the problems of dumping, subsidies to industry, and nontariff barriers |
|
|
Term
|
Definition
| Selling in a foreign market below cost or below a fair price |
|
|
Term
| When was the WTO created? What year? |
|
Definition
|
|
Term
| What has been a major theme of recent trade rounds? When was this major theme first discussed? |
|
Definition
| Intellectual Property; first started to discuss in 1986 |
|
|
Term
| How often are trade rounds held? |
|
Definition
|
|
Term
| What is the name of the current trade round? When did it begin? |
|
Definition
| Doha Round; began in November 2001 |
|
|
Term
| What were the major achievements of the Uruguay Round? |
|
Definition
Reformed tariffs and subsidies on agriculture and textiles, always sensitive areas.
Extended trading system into intellectual property rights and services.
Created WTO, extended range of negotiations, major reductions in tariffs (about 40%) and ag subsidies, full access for textiles/clothing from developing countries, and extension of intellectual property rights |
|
|
Term
|
Definition
| World Trade Organization: Organization to enforce international treaty in order to help trade flow freely |
|
|
Term
| _____ is a negotiating forum, set of rules, and place to settle disputes. |
|
Definition
|
|
Term
| What is an example of a dispute that would be handled by the WTO? |
|
Definition
|
|
Term
| Who is the most recent entrant to the WTO? |
|
Definition
|
|
Term
| When did China join the WTO? |
|
Definition
|
|
Term
| What principles are the foundation of all WTO and GATT agreements? |
|
Definition
| national treatment and nondiscrimination |
|
|
Term
| Which trade round was the most ambitious? |
|
Definition
|
|
Term
| What is the purpose of the WTO? |
|
Definition
| To help trade flow freely |
|
|
Term
| What does the WTO deal with? |
|
Definition
| Deals with the rules of trade between nations at a global or near global level |
|
|
Term
| What are the WTO Principles? (5) |
|
Definition
Trade without discrimination
Freer trade gradually through negotiation
Predictability through binding and transparency.
Promoting fair competition.
Encouraging development and economic reform. |
|
|
Term
| In what WTO concept is nondiscrimination embodied? |
|
Definition
| most favored nation status |
|
|
Term
| most-favored nation (MFN) status |
|
Definition
| Requires all WTO members to treat each other as they treat their most-favored trading partner |
|
|
Term
|
Definition
| Requirement that foreign goods are treated similarly to the same domestic goods once they enter a nation's market |
|
|
Term
| Pros of International Institutions (4) |
|
Definition
Create order
Reduce uncertainty
Overcome free-rider problem
Effectiveness ultimately depends on individual commitment |
|
|
Term
| Cons of International Institutions (4) |
|
Definition
National sovereignty
Transparency
Ideology
Asymmetric implementation and adjustment costs |
|
|
Term
| 5 Types of Regional Trade Agreements |
|
Definition
Partial Trade Agreement
Free Trade Area
Customs Union
Common Market
Economic Union |
|
|
Term
|
Definition
| Two or more countries liberalize trade in a selected group of product categories such as steel or autos. |
|
|
Term
|
Definition
| Trade in goods and services is fully liberalized between two or more countries |
|
|
Term
|
Definition
| An FTA plus a common external tariff (CET) |
|
|
Term
|
Definition
| A CU plus free mobility of factors of production |
|
|
Term
|
Definition
| A common market with coordination of macroeconomic policies (including common currency, harmonization of standards and regulations) |
|
|
Term
| Example of Free Trade Area |
|
Definition
|
|
Term
|
Definition
| Common External Tariff: The policy of customs unions in which the members adopt the same tariffs toward nonmembers |
|
|
Term
|
Definition
| EU of 1970s & ‘80s, MERCOSUR (S. America) |
|
|
Term
|
Definition
| EU of 1990s, COMESA (Eastern & South Africa) |
|
|
Term
| Example of Economic Union |
|
Definition
| US, Canada, EU members in Euro currency zone) |
|
|
Term
| What is an RTA a violation of? |
|
Definition
| Most Favored Nation treatment |
|
|
Term
| Why would the WTO allow an RTA? |
|
Definition
| trade creation > trade diversion |
|
|
Term
|
Definition
|
|
Term
|
Definition
Easier to reach agreement
Less domestic disruption
Experiment with new ideas
Credible threats |
|
|
Term
|
Definition
Undermine multilateral agreements
Polarize countries
Sap energy
Discriminate against less-developed nations |
|
|
