Globalisation Flashcards
World trade organisation
. Believes in free trade without subsides or tarrifs knownbas barriers. Removing barriers is known as trade liberalisation
. Advocated trade liberalisation and seeks to encourage all trade between countries
. By 2016, had 162 members
IMF
. Lends money to help stabilise economies rather than encourage development
. Governments receiving loans must agree to run free market economies that are open to outside investment
. Encouraged to privatise governments
. Tnc’s can enter the country
World Bank
. To finance economic development of nations through loans
. It’s goal is to reduce poverty by promoting foreign investment and international trade
. It uses bank deposits from world’s wealthiest countries to provide loans
Free market economy
Market based on supply and demand
Free trade
. Trading with no legislations
Trade liberalisation
Free trade across the world
Tarriffs
Tax on trade
Quota
Limit to how much goods can be imported
Subsidy
Money given to a business
Protectionism
Laws to protect companies
Privatisation
Business becomes private
Trade blocs
. Countries group together for mutual advantage
. Eg) NAFTA
What are Maquiladoras
. Factories near Mexican border that is full of workers who are underpaid and in danger of work related injuries for the benefit of American companies
What policies were used by the UK to globalise
. Deregulation- took away the government involvement in industry and made it private, allowing foreign investment into services
What policies were used by China to globalise
. Open door policiy allowed private companies to invest in China
. SEZ’s- New cities that encourage investment in factories, lifting 400 million people out of poverty
