Midterm Identification 2 Flashcards
Global Institutions Examples
World Bank
United Nations (UN)
World Trade Organization (WTO)
International Monetary Fun (IMF)
General Agreement on Tariffs and Trade (GATT)
Polices the world trading system.
Ensures nation-states adhere to the rules.
Facilitates multinational agreements among members.
The World Trade Organization
Established to maintain order in the international monetary system.
Often seen as the lender of last resort.
In return for loans, requires nation-states to adopt specific economic policies aimed at returning their economies to stability and growth.
International Monetary Fund
Considered less controversial than the IMF.
The World Bank
Maintain international peace and security.
UN Charter – four basic purposes
Develop friendly relations among nations.
UN Charter – four basic purposes
Cooperate in solving international problems and in promoting respect for human rights.
UN Charter – four basic purposes
Be a center for harmonizing the actions of nation
UN Charter – four basic purposes
Represents 90 percent of global GDP and 80 percent of international global trade.
G20
Declining Trade and Investment Barriers means
Ease of doing international trade and investments
when a firm exports goods or services to consumers in another country.
International trade
when a firm invests resources in business activities outside its home country.
Foreign direct investment
the global institution that lowered barriers
GATT
Extended GATT and established WTO
Uruguay Round
acts as an equalizer, more than half of the world’s population uses this
Internet
Commercial jets, superfreighters, and containerization have all “shrunk the globe.”
Transportation Technology
Locating production in geographically separate locations has become
more economical.
Implications for the Globalization of Production
Cultural distance has been reduced and has brought some convergence of consumer tastes and preferences
Implications for the Globalization of Markets.
Began with 1999 protests at WTO meeting in Seattle. Protestors now typically show up at major meetings of global institutions.
Antiglobalization Protests
_________ has a bigger impact than globalization on declining share of national income enjoyed by labor
Technological change
_________ is any firm that engages in international trade or
investment.
International business
