Economic Institutions Flashcards
What does IMF stand for?
International Monetary Fun
Goals/What does IMF do
Provide emergency short-term loans to countries, demand reforms in a country to promote good governance and get rid of corruption
What does WB stand for?
World Bank
Goals/What does WB do
Large loans for war, disaster, controlled by G7, increase growth in countries, reduce poveryyvin developing countries, fund specific infrastructure projects.
What does GATT stand for?
General Agreement on tariffs and trade
Goals/What does GATT do
Gradually eliminate tariffs and other trade barriers between themselves
What is a tariff
The tax countries have to pay to sell their goods to other countries, leads them to create their own goods
What does WTO stand for?
World Trade Organization
Goal/What does WTO do
Ensure terms if trade agreement are followed, settle trade disputes, conduct trade negotiations, their decisions are binding
What does NAFTA stand for?
North America Free Trades Agreement
Goals/What does NAFTA do
Treaty between Canada, Mexico and USA, eliminates most tariffs on trade between these nations
What does EU stand for?
European Union
Goals/What does EU do
Created a liberalizing trading area in Euope, countries are closely tied together, acts as 1 large market
