lesson 5- global systems- the role of financial +trade institutions

Question 1

what is global interdependence?

Answer 1

no country can be self sufficient, so countries rely on other countries

Question 2

what is a global system?

Answer 2

how countries, flows and systems interact with each other

Question 3

what is political interdependence?

Answer 3

-countries work together to solve issues
-intervention in wars

Question 4

what is economic interdependence?

Answer 4

countries are dependent on flow of labour, goods and capital in order for their economies to grow (GDP)

Question 5

what is social interdependence?

Answer 5

migration
-leisure activities e.g. TV produced in other countries

Question 6

what is environmental interdependence?

Answer 6

all nations are affected by other countries’ greenhouse gas emissions
e.g. nuclear fallout from Chernobyl (Ukraine) reached the UK

Question 7

what is the role of financial institutions?

Answer 7

support the worlds economic and financial order by regulating and acting as intermediaries in the flow of international capital

Question 8

The world bank:
what
roles
successes
criticisms

Answer 8

-provides financial and technical support to developing countries
-aims to reduce poverty+ promote development
ROLES- project financing,
interest free
loans to LICs.
SUCCESSES- fight against
HIV, malaria etc,
assisted in conflict
CRITICISMS-not enough
local input/
consideration
further increases
debt in some
countries, lacks
accountability,
influenced by rich

Question 9

international monetary fund(IMF):
what
roles
successes
criticisms

Answer 9

-monitors growth of trade+ member countries
ROLES-monitor development and provides advice
-offers financial assistance
SUCCESSES-debt relief, brings member countries together, provides warning
CRITICISMS-conditionality(wants something in return),not specific to a unique countries’ problem

Question 10

what does the WTO do?
+aims

Answer 10

deals with global trade rules
-supervise+liberalise trade by reducing barriers
-settles disputes
-negotiates to reach agreements

Question 11

what happened in the Doha Development Agenda?

Answer 11

the WTO focused on reforming trade in agricultural produce
-aimed for tariffs to be reduced by 30%, and food prices to be reduced
-eventually collapsed due to USA,China+India not agreeing with tariff size

Question 12

what are the successes of the WTO?

Answer 12

agreement reached in Geneva between EU and Latin about banana trade
-success 2013 in Bali to speed up movement of traded goods