bretton woods

Question 1

what are the 3 IGOs

Answer 1

the world bank, international monetary fund and world trade organisation

Question 2

what are the main aims of IGOs

Answer 2

maintain dominance of western capitalism, support free trade, increase FDI and capital flows and increase funding

Question 3

what is FDI

Answer 3

foreign direct investment, when a business in one country invests in another to open a chain

Question 4

what are examples of FDIs

Answer 4

real estate investments, mergers and aquisitions, offshoring and transfer pricing

Question 5

why do governments encourage FDIs

Answer 5

influx of capital can boost economic growth, improve infrastructure and greater competition lead to productivity gains and efficiency

Question 6

what are advantages of free trade?

Answer 6

exporters have a competitive advantage, workers can gain jobs in export, consumers benefit from lower import prices and have more disposable income

Question 7

what are disadvantages of free trade?

Answer 7

uncompetitive firms lose out on cheaper imports, which leads to workers losing jobs in uncompetitive industries, industries will decline

Question 8

what are disadvantages of cross border trade?