Chapter 9 Flashcards
Multilateral organizations:
“International organizations formed by three or more countries to work together on common goals such as trade, security, development, or the environment.”
General Agreement of Tariffs and Trade (GATT):
A multilateral agreement governing the
international trade of goods (merchandise)
World Trade Organization (WTO):
The organization underpinning the multilateral trading system
General Agreement on Trade in Service (GATS):
A WTO agreement governing the international
trade of services
Non-discriminating principle:
A principle that a country cannot discriminate among its trading
partners (also known as most favoured nation principle)
Trade-Related Aspects of Intellectual Property Rights (TRIPS):
A WTO agreement governing
intellectual property rights
Compulsory licences:
Licences issued by a national government in an emergency without
agreement of the licence owner
WTO dispute settlement mechanism:
A procedure of the WTO to resolve conflicts between
governments over trade-related matters
Free trade agreements (FTAs):
A group of countries that remove trade barriers among
themselves
Deep trade agreements:
An FTA that covers more than removal of tariffs, quotas and export
promotion
Regional FTAs:
A free trade agreement between countries in the same region of the world
North America FTA (NAFTA):
Former name of the North American Free Trade Agreement
Association of South East Asian Nations (ASEAN):
The Association underpinning regional
economic integration in South East Asia
This highlights ASEAN’s key role in promoting regional cooperation and economic integration among its member states in Southeast Asia.
Regional Comprehensive Economic Partnership (RCEP):
A trade agreement between 15
countries in Asia-Pacific
ECOWAS:
Economic integration in West Africa
CFA franc:
Common currency of French-speaking countries in West Africa
African Continental Free Trade Area:
Organization to facilitate economic integration in Africa
Generalised System of Preferences (GSP):
A system of tariff reductions facilitating less and
least developed country’S access to EU markets
International investment agreements (IIAs):
Agreements between states to protect foreign
direct investment between countries
Investor-state dispute settlement:
Legal processes using tribunal that are outside the national
and supranational court system
=> ISDS allows a foreign investor to sue a country’s government through international arbitration rather than through local or international courts. It’s often included in trade agreements to protect investors from unfair treatment, but it’s also a bit controversial—people debate whether it gives too much power to corporations.
Australia-New Zealand Closer Economic Relations Trade Agreement:
A bilateral trade
agreement between Australia and New Zealand
EU Canada Comprehensive Economic and Trade Agreement:
The economic integration
agreement between the EU and Canada
Transatlantic Trade and Investment Partnership:
An economic integration agreement in
negotiation between the EU and USA
Trade diversion:
A change in trade pattern away from comparative advantages due to trade barriers
=> Trade diversion happens when a country starts buying goods from a less efficient (more expensive) country, just because it’s part of a trade deal or customs union, instead of buying from the most efficient producer who may be outside the deal
Rules of origin:
Criteria products have to fulfil to be eligible for tariff exemption under an FTA
IMF conditionality:
Conditions that the International Monetary Fund attaches to loans to bail out countries in financial distress
Development aid:
A gift from generous donors wishing to help developing countries
European Bank for Reconstruction and Development:
A multilateral bank designed to help
transition economies
Asia Infrastructure Investment Bank:
A development bank based in Beijing
Intergovernmental Panel on Climate Change:
A global collaboration of climate scientists
Kyoto Protocol:
An agreement committing developed countries to limiting their greenhouse gas
emissions
Paris Agreement:
An agreement in which countries make major commitments towards climate
change goals
Basel Committee:
A group of central bankers establishing standards for banking supervision
Basel II/Basel III:
The name of a set of rules for banking regulation
International Monetary Fund:
- Monitoring the global economy
- Providing technical assistance to developing countries
- Lending to countries in financial difficulties
Risk-ratings agencies:
Agencies that assign ratings to assets such as bonds that indicate the
level of riskiness of the asset
Black swan events:
Rare events that occur only once in a generation
