Barriers to trade and Trade blocs

Question 1

What is Ethical Investment?

Answer 1

Form of ethical consumerism, Investors make a deliberate choice to invest capital based on the activities of the firm/organisation they are investing in. Personal beliefs (environmental, religious and political) as a filter to make investment decisions.

Question 2

What is protectionism?

Answer 2

Protectionism: represents any attempt by the government to impose restrictions on trade on goods or services between countries.

Question 3

Non Tariff Barriers to International trade:

Answer 3

• Import license
• Quotas
• Subsidies
• Voluntary Export Restraint (VER)
• Embargoes

Question 4

Who is the WTO (World Trade Organisation)?

Answer 4

The WTO deals with the rules of trade between nations at a global or near-global level. The WTO has 164 ,members, representing more than 95% of the total world trade.

Question 5

The WTO oversees the rules of international trade, which are:

Answer 5

1. Countries cannot give another country special access to their market without doing so for every country int eh world.
2. Countries should promote free trade.
3. Countries should act predictably in their trading.
4. There should be fair competition.

Question 6

What is the IMF (International Monetary Fund)?

Answer 6

Monitors the global economy and advises governments on how they could improve their economic situation (works to improve financial instability, economic growth and reduce poverty)

It intervenes in situations of financial crisis to provide loans and conditions for restructuring the economy and avoid future crisis.

Question 7

What is the top-down approach?

Answer 7

decisions to undertake projects or developments made by a central authority - little to not consultation with the local people who may be affected.

Question 8

What is the bottom-up approach?

Answer 8

when local people are consulted and supported in making decisions to undertake projects based on their specific needs.