Governments And Organisations Flashcards
What is the job of the World Bank?
To use bank deposits placed by the world’s wealthiest countries to provide loans for development and grants/technical assistance to help countries recover from natural disasters. It works with governments and multilateral organisations and global banks.
What is the downside to the World Bank?
Recipient countries have to agree to certain conditions concerning repayment and economic growth.
What is the job of the IMF?
Supports countries that get into financial difficulties so they can continue to participate in global trade and keep the monetary system stable.
What’s the downside to the IMF?
In return for loans, it tries to force countries to privatise government assets in order to increase the size of the private sector and generate wealth.
Many believe it has also forced poorer countries to sell off its assets to wealthy TNCs.
What’s the job of the WTO?
To reduce tariffs and trade barriers, discourage subsidies and establish free trade links between all countries rather than preferential deals between countries. Basically to promote free trade.
What are protectionist policies?
Globalisation increases competition and businesses in a country may suffer. Some governments are put under pressure to impose taxes and tariffs on external goods and services to protect domestic businesses.
How has containerisation sped up globalisation?
World’s largest trade route is between Asia and Europe.
In 1990, the average container ship held 4000 containers and there were many shipping companies.
But now, fewer but larger shipping companies dominate global trade and the largest ships carry 20000 containers.
What is outsourcing?
Building products/items elsewhere (eg, Asia) to exploit cheap labour costs.
