Chapter 4: Bretton woods, GATT, and the WTO Flashcards
What was Keynes’ ideology which broadly defined the bretton woods regime?
National interests will always trump the needs of globalization, and there was a need for domestic protectionism and safety nets.
What two global trade organizations were created by keynes and his fellow economists in bretton woods?
The World Bank and IMF
What did the systems brought forth by bretton woods seek to achieve?
Enough international discipline to progress towards trade liberalization while providing enough space for govt’s to respond to social and economic needs at home.
What is multilateralism?
Rule setting through international organizations.
What did GATT achieve by incorporating many nations in the agreement?
It backed these countries with the influence of the United States.
What were some reasons GATT was not perfect?
Large loopholes companies could take advantage of, no real enforcement power.
With the creation of the WTO, what was the signal achievement which made it more effective than GATT?
The ability to settle international disputes without an easy way to reverse the decision (i.e. enforcement power)
What is one major consequence of trade liberalization and the policies of these new international organizations?
Rising income inequality, consequences for cheap imports on foreign producers (cotton growers being undercut by cheap imported cotton), lack of domestic safety nets for those undercut by free trade.
