Chapter 10 Flashcards
Bretton Woods Conference was created in…..
1994
The Gold Standard
A fixed exchange rate the value of a currency is set by the government. Each of the countries also agrees that the fixed exchange rate for its currency would be based on the Gold Standard.
In 1976 all the world’s major currencies were had?
Floating Exchange Rate
India has become famous for……
providing outsourcing services for many western companies.
China has become the world leading what?
foremost country in manufacturing goods for the western world.
Governments spend and decrease…..
Taxes when consumer spending is too low and could threaten recession.
Governments reduce spending and increase taxes when….
Consumer spending is to great and inflation becomes a problem.
Free Trade involve’s the removal of?
Tariffs
What is a Tariff
A Tariff is a tax that is imposed on imports to increase their cost and thus reduce competition with domestic products.
GATT also known as?
when was it established?
General Agreement on Tariffs and Trade. it was established in 1947 as an agency of the UN.
In 1995 GATT was replaced with
The World Trade Organization also known as WTO
In 1989 Canada and the USA signed…..
Free Trade Agreement. (FTA)
What did Canada want out of this?
Canada wanted access to the large US market in order to export its goods and services.
What did the US want out of this.
The US wanted access to Canadas vast natural resources and Canada’s cultural industries.
In 1994 The FTA was expanded to include who?
Mexico
