Lesson 3 Flashcards
What is IMF?
International Monetary Fund
What does IMF do?
Lends money for development purposes ( similar to world bank).
What is IMF’s primary role?
Maintain financial stability
tries to privatise government assets in return for loans to increase private sector and increase wealth
Try to stabilise currencies to maintain economic growth
What is a drawback of IMF?
Many believe its forced on poor countries to sell off assets to wealthy TNCs
What do the world bank do?
Finance economic development
How does the world back fund this?
Uses bank deposits placed by the worlds wealthiest countries to provide loans for development in countries that agree to certain conditions for repayment & economic growth
What does the world bank mainly give loans for?
Natural disasters and humanitarian emergencies
What is WTO?
World trade organisation
What does WTO believe in?
Free trade
What have WTO done?
Removed trade liberalisation & encourage trade free from tariffs and restrictions
What is a trade bloc?
An intergovernmental agreement where barriers to trade are reduced or eliminated
Positives of trade blocs? (6)
Improved technology
Markets grow - 20 new nations gained EU more access to customers eg. Tesco
Jobs created - businesses and people move more freely
Free trade within bloc - tariffs are removed
Traveling is easier
Increased investment from other countries - improvements
Negatives of trade blocs? (5)
countries lose resources to more efficient members
International crime increases - easier for criminals to move across boarders
TNCs may relocate where it is cheaper
They discourage trade with non members
Increased competition
What are 2 examples of Trade blocs?
EU and OPEC
