Week 6 Flashcards
What do you need to ask when establishing an international trade system?
- How will goods and services be paid for?
2. How will goods and services cross state borders?
What is unilateralism?
One state’s policy towards all others. Usually pursued by largest, strongest economy with large market
What is multilateralism?
Involving more than two states, promises largest benefit
What is regionalism?
Involves states of a geographic region, smaller market but easier to create because you don’t have political, development, interest differences
What is bilateralism?
Involving two states. Specific outcomes, faster to conclude, FTAs
What three institutions is hegemonic power task to?
IMF;
International bank for Reconstruction and Development (World Bank);
International Trade Organisation
When was the IMF established?
At Bretton Woods
What was the IMF’s goal?
To institute a framework for economic cooperation
What did the IMF do?
It supervised and supported fixed exchange rates
When was the International Bank of Reconstruction and Development established?
Bretton Woods
What was the IBRD designed to do?
Finance the reconstruction of war torn Europe. Also designed to fund an expanding market in Europe
What were the 3 affiliates of the IBRD?
International Finance Corporation, Multilateral Investment Guarantee Agency, International Centre for Settlement of Investment Disputes
What was the ITO replaced by?
GATT - General Agreement on Tariffs and Trade
What are the functions of the WTO?
- Administering WTO trade agreements
- Forum for trade negotiations
- Handling trade disputes
- Monitoring national trade policies
- Technical assistance and training for developing countries
- Cooperation with other international organizations
