International Trade

Question 1

Bretton Woods Regime’s 3 Pillars

Answer 1

1. Economic Development (World Bank)
   —> Help developing countries
2. Monetary Stability (IMF)
   —-> Ensured fixed but adjustable exchange rates
3. Trade (WTO)
   —-> General commitment to free trade with generous safeguard clauses

Question 2

Bretton Woods system

Answer 2

• Initially successful, but overtime internal contradictions emerged
• Relied on pegging of US$ and gold. This became problem to USA and in 1971 US president suspended gold convertibility
• Fee years later, Bretton Woods system fell apart, but we still have major institutions

Question 3

WTO Dispute Settlement works

Answer 3

• 1 year ( Without Appeal )
• 1 year 3 months ( With Appeal )

Question 4

IOs associated with Bretton Woods System

Answer 4

1. WTO
2. IMF - international monetary fund
3. World Bank