Exam #3 Flashcards
Liberalism was discussed by what philosopher in the 18th century?
Adam Smith
What are basic ideals of liberalism?
- Free trade
- States let markets do their own thing
- competition, efficiency, innovation
Who was a big advocate of mercantilism in the 19th century?
Alexander Hamilton
Basic ideals of mercantilism?
- states should be involved in economic development
- Protect from the forces of the market
- State involves itself in the market
What are the differences between liberalism and mercantilism regarding the market?
M- Market/economy works for the state
L- The state works for the Market/economy
Mercantilism uses ______ as a policy or strategy.
Protectionism
Define globalization.
the expansion of free trade everywhere, by opening up
all markets and states to the global economy
Name some reasons for anti-globalization
- environment
- labor
- human labor rights
What is GATT?
General Agreements on Tariffs and Trade
What is WTO?
world trade organization
What led GATT to become the WTO?
- agriculture
- intellectual property rights
service sectors policies Uruguay Round of the GATT - problems of enforcement and permanence
Who protests WTO, free trade in general?
- Labor
- human rights groups
- environmental groups
Who is against free trade?
- protectionists—economic nationalists
- labor
- environmentalists
What is the IMF/World bank used for?
International currency
What is the Bretton Woods system?
- System was designed to create global monetary stability after World War II.
