Trade Liberalization Flashcards
What is NAFTA?
An economic agreement between Canada, the United States and Mexico. NAFTA created the second largest free trade zone in the world. Established in 1994
Name 3 Pros of Private Enterprise
> More Choice and Innovation
Better Quality
Profit
What is a tariff?
A tax placed on foreign goods coming into a country. However, trade liberalization has lowered the cost of tariffs.
What is the World Bank?
An emergency fund created in 1945. This fund is for developing countries. Set up to help reduce world poverty
What is the International Monetary Fund (IMF)?
An emergency fund for developed countries experiencing economic difficulties. Established in 1945.
What is the World Trade Organization?
An organization composed of 189 countries that strives to increase international trade by lowering trade barriers & making trade more predictable. Established in 1995.
What is the European Union?
An economic union that integrates the economies of 28 countries in Europe. These countries are pushing towards becoming connected politically, economically and socially.
Which country outside of the G7 has the best economy A.) South Korea B.) Saudi Arabia C.) Sweden D.) Russia
The answer is D, Russia. Russia was part of the G8 but was kicked out. The 7 other countries formed the G7.
What is free trade?
The process that involves countries in reducing or removing trade barriers such as tariffs and quotas so goods and services can move around the world more freely
What is the opposite of trade liberalization?
Protectionism
If the Canadian dollar increased in value, who would see the most negative consequence?
Canadian exporters, exported goods would become cheaper to buy.
Which conference resulted in the creation of the IMF and the World Bank?
The Bretton Woods Conference
What is GATT?
General Agreement on Tariffs and Trade, a legal agreement between many countries whose overall purpose was to promote international trade by reducing or eliminating trade barriers.
Name 3 Pros of Public enterprise
> Universal access
Regulated by government
Focus on cooperation and collective need
Why were the IMF and World Bank created?
Many nations realized that their economies were connected to other economies. They were created to help maintain a stable world economy.
