They include war, famine, natural disasters, change in investors' confidence, sustainability of non-renewable energy, economic policies, and economic uncertainty.
What are factors affecting the global economy?
100
Provision of Bretton Woods Agreement: all printed money could be convertible to gold and could be cashed in at any time for that gold.
What is the Gold Standard?
100
Only international organization that deals with global rules of trade among countries.
What is the World Trade Organization?
100
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?
100
Pro's:
Bring wealth into country through employment and investment.
Provides jobs and passes on expertise.
Con's:
Managers from other countries but employ manual labour from local community at low wages.
Does not reduce poverty.
May use influence over a country to gain subsidies or grants.
What is the impact of transnationals?
200
Established a set of rules, institutions and procedures for the post WWII economy.
What is the Bretton Woods Agreement (1944)?
200
Helps develop natural resources and speed up economic process in war torn counties.
Negotiates long term loans.
What is the World Bank?
200
Occurs when two or more countries eliminate tariffs and taxes on the goods and services they trade with one another.
What is free trade?
200
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?
200
Occurs when one company hires another company to fulfill certain tasks in production.
Results from comparative advantage: a country’s ability to produce a product or service with comparatively fewer resources than another country.
What is outsourcing?
300
The value of a country’s currency set by its government.
What is a fixed exchange rate?
300
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 General Agreement on Tariffs and Trades?
300
Where disputes are brought in regards to countries who do not 'follow the rules'. Is not available to general public.
What is a tribunal?
300
Reduced government spending, taxes and government regulation, and the power of trade unions.
Privatized many industries.
Who is Margaret Thatcher?
300
Countries joining to improve economic stability.
Consists of MERCOSUR and CAN.
Goal to improve member country economies by opening markets, promoting economic development, and conserving the environment.
Must be committed to democracy and human rights.
Goal: to eliminate all tariffs by 2019.
Internal conflict is an issue for efficiency and sustainability of group.
What is the South American Trading Blocs?
400
Currency rates that find their own value on the foreign exchange market. Based on supply and demand.
What is a floating exchange rate?
400
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 International Monetary Fund?
400
The year Canada, U.S. and Mexico signed the NAFTA.
What is 1994?
400
Informal group of major democracies.
Have 50% of vote in the World Bank and IMF.
Has had large influence in campaigns to combat disease in developing countries.
What is the Group of 8?
400
Strongest form of regional integration, free trade of goods and services, and free movement of capital and labour.
Share responsibility for passing laws and making policy decisions.
Every 5 years people of each country elect their parliament, voting power is based on population of each country.
More than 50% of each country’s trade occurs in the region.
What is the European Union?
500
Heavily Indebted Poor Counties (HIPCs): must agree to, and apply, reforms from the World Bank to receive debt relief.
What is the most offensive World Bank institution?
500
Headquarters in Washington, D.C.
Under the control of the UN
Purpose:
To help countries get back on stable financial footing (post WWII)
Agree on rules to deal with monetary affairs and govern international trade and finance.
What is the IMF AND World Bank?
500
Trade between these nations reached $904 billion in 2011.
What is Canada, U.S. and Mexico?
500
This leader stated: "A man may climb Everest for himself, but at the summit he plants his country's flag."
Who is Margaret Thatcher?
500
The process of reducing barriers to trade.
Can include privatizing crown corporations, encouraging foreign investment and outsourcing jobs.
Involves deregulation by opening an industry to more competition by removing government regulations
A result is foreign investment.