Economic Institutions

Question 1

The world bank

Answer 1

controlled by the G7

provides large loans to countries that need it

goals:
increase growth in countries
fund projects
reduce poverty

Question 2

IMF (international monetary fund)

Answer 2

provides smaller quick loans for emergency purposes
ex. disasters, wars

there is often a catch to receive the money (“if we give you the money you have to work to reduce corruption in your country)

larger interest rate

demands reforms

Question 3

GATT (general agreement on trades and tariffs)

Answer 3

aims for free trade and to eliminate trade barriers

tariffs: the tax countries have to pay to sell their goods to other countries

no longer exists

free trade: reduction of trade barriers

Question 4

WTO (world trade organization)

Answer 4

replaces GATT

acts as a trade police to ensure that countries live up to their trade agreements

aims for free trade

Question 5

NAFTA (north american free trade agreement)

Answer 5

a trade agreement between North America (Canada, United States, and Mexico) that eliminates tariffs and allows free trade between North America

Question 6

EU (European Union)

Answer 6

Establishes Europe as one big trading and political power

makes trade easier in Europe

also allows open borders between European countries and a common currency