Chapter 3 Flashcards
Market integration
The social institution that has one of the biggest impacts on society is the
economy
economy is composed of
people.
It is the social institution that organizes all production, consumption, and trade of goods in the society.
Economy
– extracts raw materials natural environments.
Primary Sector
– gains the raw materials and transforms them into manufactured goods.
Secondary sector
– It offers services by doing things rather than making things
Tertiary sector
True or False
The strength of a more powerful economy brings greater effect on other countries.
True
What element is this 1st element, 2, 3, 4, or 5
the expression of currency in terms of gold or gold value to establish a par value. e.g. a 35 U.S. dollar pegged by the United States per ounce of gold is the same as 175 Nicaraguan
1st Element
in each country (a central bank or its equivalent) would agree to exchange its own currency for those of other countries
the official monetary authority
Most currencies are pegged to hence “Gold Standard” since it is redeemable in gold
gold
individuals are no longer allowed to exchanged paper money to gold but
central banks only.
What element is the establishment of an overseer for these exchange rates; thus, the International Monetary Fund (IMF)
third element
This was established to administer responsibility to coordinate and regulate international monetary transaction as well as to promote economic prosperity and political stability. (Short term effects)
IMF – International Monetary Fund
loans were expanded to the developing countries in the world to provide funds to finance various industrial projects. (Long term effects)
World Bank (before was “IBRD” or the International bank for Reconstruction and Development)
What element eliminating restrictions on the currencies of member states in the international trade The General Agreement on Tariffs and Trade (GATT) was established in 1947 charged in crafting and policing multilateral trade agreements. Today, it is known as World Trade Organization (WTO).
Fourth
The General Agreement on Tariffs and Trade (GATT) was established in charged in crafting and policing multilateral trade agreements.
1947
was established in 1947 charged in crafting and policing multilateral trade agreements.
The General Agreement on Tariffs and Trade (GATT)
The General Agreement on Tariffs and Trade (GATT) Today, it is known as
World Trade Organization (WTO).
What element is this is that the U.S. dollar became the global currency.
final element
True or false
By the 1950s and 1960s, European countries and Japan regained their economies and that undermined the economic competitiveness of the United States.
True
True or false
The monopolization of US dollars led to the over valuation relative to other currencies to the extent that some countries doubted the supply of gold in the United States treasury.
True
President of United States
Nixon
With the pressure mounting President Nixon of United States
announced on to abandon the gold-exchange standard.
August 15, 1971
