CHAPTER 2 Flashcards
Enumerate TRANSNATIONAL INSTITUTIONS
World Trade Organization (WTO)
World Bank
International Monetary Fund (IMF)
Regional Institutions
created on 1 January 1995, marked the biggest reform of international trade since the end of the Second World War
WORLD TRADE ORGANIZATION
is the only global international organization dealing with the rules of trade between nations
WORLD TRADE ORGANIZATION
164 member states
WORLD TRADE ORGANIZATION
organization for trade opening
WORLD TRADE ORGANIZATION
forum for governments to negotiate trade agreements
WORLD TRADE ORGANIZATION
place for them to settle trade disputes
WORLD TRADE ORGANIZATION
operates a system of trade rules
WORLD TRADE ORGANIZATION
place where member governments try to sort out the trade problems they face with each other
WORLD TRADE ORGANIZATION
conceived in 1944 during the Bretton Woods Conference with 44 representative, but created in 1945
INTERNATIONAL MONETARY FUND
foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world
INTERNATIONAL MONETARY FUND
primary purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other
INTERNATIONAL MONETARY FUND
fundamental mission of INTERNATIONAL MONETARY FUND in three ways
surveillance, lending and capacity development
190 member countries
INTERNATIONAL MONETARY FUND
initially formed in 1944 also during Bretton Woods Conference to aid countries suffering from the destruction of war
WORLD BANK
189 member countries
WORLD BANK
is a unique global partnership working for sustainable solutions that reduce poverty and build shared prosperity in developing countries.
WORLD BANK
FIVE INSTITUTIONS OF World Bank
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
INTERNATIONAL DEVELOPMENT ASSOCIATION
INTERNATIONAL FINANCE CORPORATION
MULTILATERAL INVESTMENT GUARANTEE AGENCY
INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES
are, in a sense, international organizations, as they incorporate international membership and encompass geopolitical entities that operationally transcend a single nation state.
REGIONAL INSTITUTIONS
are special because they can affect currency values and the fiscal and monetary policies of governments, shape public perception of competitiveness, and determine the level of imports a country can afford.
Exports
firms become exposed to new competition, which may offer new approaches, better processes, or better products and services.
import
tends to be concentrated in specific sectors, where the foreign investors believe they are able to contribute the best and benefit the most from their investment.
Foreign direct investment
As a result, some individuals and policymakers may grow concerned about dependency on foreign owners, even though firm proof for the validity of such concern has been difficult to establish.
Foreign direct investment
implies that there is a coordinated set of continuous activities in the legislative and executive branches of government to attempt to deal with U.S. international trade
world policy
Unfortunately, such concerted efforts only rarely come about.
world policy
Policy responses have consisted mainly of political ad hoc reactions, which over the years have changed from deep regret to protectionism.
POLICY RESPONSES TO Trade Problems
