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.
How did the Bretton Woods system work?
The Bretton Woods system pegged major international currencies to the U.S. dollar, which was in turn pegged to gold at a fixed rate of $35 per ounce.
When did the Bretton Woods system collapse?
August 71’
