Topic 1 - International economic relations and international trade statistics Flashcards
What are the International Trends and their purposes?
Liberalising trends - Comparative advantage - Economies of scale - Greater variety in goods and services Protectionism trends - Nascent industries - National securities - Counterbalance unfair trade and production practises - Tax collection
Name the Economic Regions of the world and state why they’re enforced.
NAFTA
- Increases trade and investment between its 3 member countries through the reduction of tariffs
MERCOSUR
- Removal of tariffs among member states and common external tariff
ASEAN
- Removal of tariff among member states
EU
- Removal of tariffs and trade restrictions among members with a common external tariff and trade policy
Name the International Economic Organisations.
IMF,
WB,
Gatt & WTO,
UNCTAD
What are the objectives of the IMF (International Monetary Fund)?
“Promote a healthier global economy”
- Promoting a balanced international trade growth
- Stability of exchange rates
- Avoid competitive currency devaluations
- Correction in balance of payment problems
What are the main roles of the IMF?
To:
- ADVISE on policy measures and global surveillance
- FUND support to member countries with balance of payment problems
- Provide TECHNICAL ASSISTANCE AND TRAINING for government officials and central banks
What is the role of the World Bank (WB)? And name the 5 major branches.
To act as a FINANCIAL INTERMEDIARY and PROVIDE SUPPORT to developing countries through LONG-TERM FINANCIAL RESOURCES for investment projects
- International Bank for Reconstruction and Development
- International Development Association
- International Finance Corporation
- Multilateral Investment Guarantee Agency
- International for Settlement Investment Disputes
Where does the International Bank for Reconstruction and Development (IBRD) focus its efforts and for what reason?
- Middle income countries (MICs) with a creditworthy investment
- Loans for productive purposes to governments and public enterprises
Where does the International Development Association (IDA) focus its efforts and for what reason?
- 78 poorest countries in the world
- Concessional loans i.e lower interest rates than that of the current market’s value
Where does the International Finance Corporation (IFC) focus its efforts and for what reason?
- Promoting the private sector in development countries
- Loans and equity investments for business initiatives in developing countries and technical assistance and advice
Where does the Multinational Investment Guarantee Agency (MIGA) focus its efforts and for what reason?
- Promote foreign investment in developing countries
- Guarantee investors against losses caused by non-commercial risk i.e. wars, riots etc.
Where does the International Centre for Settlement of Investment Disputes (ICSID) focus its efforts and for what reason?
- Provide legal certainty to international investment flows
- International facilities for cancelations and arbitrage in investment disputes
What is the role of the World Trade Organisation (WTO) and what are its fundamental principles?
- No discrimination
- More free trade
- Foreseeable opportunities
- More competitive trade
- Better advantages for LEDCs
What is the objective of UNCTAD and what are its duties?
“Maximise business opportunities, investment and development in developing countries and assistance in their efforts to integrate into the world economy”
- Technical assistance
- Lobby to negotiate with developed countries
- Generalised System of preferences (GSP) reduces tariffs to certain products exported with the aim of promoting industrialisation
Name the 4 International Trade Restrictions.
1) Quantitative restrictions i.e. Quotas or Voluntary Export Restrictions
2) Barriers that cause an increase in costs i.e. TECHNICAL BARRIERS TO TRADE (TBTs)
3) Restrictions on market access i.e. public contracts, entry in certain markets
4) Subsidiaries and other competition distorting practises i.e. public subsidiaries for domestic production or export
Define Technical Barriers to Trade (TBTs).
Trade restrictions that need to adapt the production or marketing of a product to the technical quality and safety of the importing country
