Unit 3: Market Integration Flashcards
The history of economic globalization can be traced back to the early years of the […] and […]
- Roman Period
- early voyages
During these times, the international trade expanded significantly as did cross-border flows of financial capital and labor
- Napoleonic War (1815)
- Beginning of WWI
The heightened economic integration achieved during the early 19th century was ruined by […] and […]
- WWI & WWII
- Great Depression
This agreement was enacted during the post-world wars, aiming to create an efficient foreign exchange system, prevent competitive devaluations of currencies, and promote international economic growth
Bretton Wood System
(1944-1945)
These two institutions were established as part of the Bretton Woods Agreement in 1945, aiming to address specific concerns in regard to the economic crisis the world has experienced
- International Monetary Fund
- World Bank
An institution created to oversee the world’s monetary system’s stability, comprised of 189 member countries
International Monetary Fund
An institution created to provide financial assistance and strategic advice to nations profoundly affected by the world wars
World Bank
The 4 branches of the World Bank
- International Bank
- International Development Association
- International Finance Corporations
- International Centre for Settlement of Investment
An agreement signed into law by 23 countries after the world war to monitor world trade that may lead to economic recovery
General Agreement on Tarrifs and Trade (GATT)
(Jan. 1, 1948)
A global organization of 164 member countries that deals with the rules of trade between nations
World Trade Organization
A term used to identify a phenomenon in which markets of goods and services that are related to one another is experiencing similar patterns of increase of decrease in product prices
Market Integration
A type of market integration that implies eliminating barriers that restrict the movement of goods and services
Negative Integration
A type of market integration that creates supranational arrangements for social protection and correction of market failures
Positive Integration
The 5 levels of economic integration
- Preferential Agreement
- Free Trade Area
- Custom Union
- Common Market
- Economic Union
Level of Economic Integration
Lessens tariffs and quotas between member countries
Preferential Agreement
Level of Economic Integration
Reduces barriers to trade among member countries to zero, but each member has its own decision on external tariffs to non-members
Free Trade Area
Level of Economic Integration
Has a common rate of tariff to non-member countries
Custom Union
Level of Economic Integration
Labor and capital are included in the trade
Common Market
Level of Economic Integration
Common policies that involve common currencies
Economic Union
[…] were founded by groups of countries to promote public and private investment to foster economic and social development
International Financial Institutions
An international organization that works to build better policies for better lives
Organization for Economic Cooperation and Development (OECD)
An international organization that monitors and stabilizes the price of oil
Organization of Petroleum Exporting Countries (OPEC)
An international organization that promotes political and economic cooperation and regional stability
Association of South East Asian Nations (ASEAN)
An international organization that sustains economic growth through a commitment to open trade
Asia Pacific Economic Cooperation (APEC)
