Economic Globalisation
4 main factors that contribute to the expansion of globalization
What is communication, trade, transportation, and the media?
IMF
What is the International Monetary Fund
Agreement aimed to reduce trade barriers among member countries Goal: To eliminate tariffs and other trade barriers between themselves. Regulated trade services and goods. Set rules to protect copyright and intellectual property.
What is the GATT?
Argued for a system of fixed exchange rates and government involvement. Suggested the government 'pay their way out of a recession'.
Who is John Maynard Keynes?
An economic and political system whose purpose is to eliminate class distinctions. Everyone works for the benefit of all and receives help as needed.
What is communism?
Established a set of rules, institutions and procedures for the post WWII economy.
What is the Bretton Woods Agreement (1944)?
WB
What is the World Bank?
Occurs when two or more countries eliminate tariffs and taxes on the goods and services they trade with one another.
What is free trade?
Believed that governments should not be involved in economy- based on his analysis of totalitarian regimes. Argued that less government involvement meant greater economic freedom and prosperity.
Who is Friedrich Hayek?
Occurs when one company hires another company to fulfill certain tasks in production.These other companies are often located in countries where government regulation is less strict.
What is outsourcing?
87% of these factories are owned by American companies or subsidiaries
What is the maquilas/maquiladoras?
WTO
What is the World Trade Organization?
Set dependable international exchange rates and promote foreign trade. Provides emergency short term loans and demands reform in countries to get rid of corruption.
What is the IMF?
The treaty that formally ended the First World War and forced Germany to pay reparations
What is the Treaty of Versailles?
DAILY DOUBLE
What is one criticism and one supporting point for the WTO?
A Canadian company that traded oil with the Sudanese government during the civil war.
What is Talisman Energy?
NAFTA
What is the North American Free Trade Agreement?
Economic and political union that allows free trade and free movement of people, to live and work in whichever country they choose.
What is the EU?
The Great Depression was sparked by this event.
What is the Stock Market Crash of 1929?
A penalty, such as a trade boycott, taken to pressure a government.
What is a sanction?
DAILY DOUBLE
What is one reason supporting and one reason opposing NAFTA?
GATT
What is the General Agreement on Tariffs and Trades?
Ensures that the terms of trade agreements are followed, settles trade disputes between governments, and conducts trade negotiations
What is the WTO?
The Treaty of Versailles was one of the prompts for this major world event
What is World War II?
Process where countries remove or reduce the barriers to trade to allow for the easier flow of goods and services.
What is trade liberalization?