UNIT 5.1 Flashcards
What is Globalization?
The process by which people and goods move easily across borders, integrating markets, trade, and investments with few barriers.
Globalization also includes a cultural element where ideas and traditions are traded and assimilated.
What are the key characteristics of Globalization?
- Economic networks growing more interconnected
- A worldwide market with actors unconstrained by political borders
- A reduction in state control over economies
What is the International Monetary Fund (IMF)?
An international organization of 190 member countries that ensures the stability of the international monetary and financial system, facilitating the expansion of international trade.
Established in 1945.
What are the main functions of the IMF?
- Facilitating the expansion and balanced growth of international trade
- Promoting exchange stability
- Providing opportunities for orderly correction of countries’ balance of payments problems
What is the World Trade Organization (WTO)?
An international organization of 164 members that deals with the rules of trade between nations, ensuring smooth and predictable international trade flows.
Established in 1995, succeeding GATT.
What is the role of the World Bank?
An international organization affiliated with the United Nations that finances projects to enhance economic development in member states.
Headquartered in Washington, D.C.
What types of assistance does the World Bank provide?
- Financial assistance
- Technical assistance
- Policy advice
- Supervision of free-market reforms
How does state membership in the IMF affect countries?
Promotes economic liberalization policies for countries like Iran, Mexico, Nigeria, Russia, and the United Kingdom.
What is the effect of World Bank membership on countries?
Promotes economic liberalization policies for countries like Iran, Mexico, Nigeria, Russia, and the United Kingdom.
What is the impact of WTO membership on countries?
Promotes economic liberalization policies for countries like China, Mexico, Nigeria, Russia, and the United Kingdom.
What economic policies have China and Nigeria enacted?
Economic liberalization policies, with expectations from respondents that children will be better off than their parents.
Why did Russia join the WTO?
To increase access to global trade and gain acceptance into the international community.
What condition did Russia have to meet to accept emergency loans from the IMF?
Adopt structural adjustment programs that reduced tariffs on imports and government subsidies to domestic businesses.
What is a characteristic of multinational corporations?
They dominate global and local markets and can conflict with domestic economic policies regarding labor, environment, and taxation.
