International Institutions from an Insternational Business Perspective

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International Business
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International Institutions from an Insternational Business Perspective
  1. Institutions
    1. New institutional theory
      1. Undestanding of institutions as social constructs, a collection of norms that structure the relations of individuals to one another
      2. Types of institutions
        1. Formal institutions
          1. Operate through laws and regulations
          2. Informal institutions
            1. Use norms, values, customs and ideologies
              1. Normative
                1. Cognitive
          3. The United Nations
            1. UN Organization
              1. Five organs
                1. General Assembly, Security Council, Economic and Social Council (ECOSEC), International Court of Justice (ICJ), and the Secretariat
              2. UN Millenium Development Campaign
                1. It was launched in 2000. Its goal is to end povetry by 2015
                2. 192 member countries dedicated to world peace and stability
                3. International Monetary Instituions
                  1. International Monetary Fund
                    1. Institution that fosters global monetary cooperation, financial stability, international trade, high employement and sustainable economic growth, and reduction of povetry
                      1. Current IMF issues
                        1. IMF works to help economies manage risks inherent in globalization
                        2. IMF and Exchange rates
                          1. 1945. Set fixed exchange rates between member nations
                      2. The World Bank
                        1. Institution that lends money for development projects
                          1. Major institutions
                            1. International Bank for Reconstruction and Development (IBRD)
                              1. International Development Association (IDA)
                              2. Minor institutions
                                1. International Finance Corporation (IFC)
                                  1. Multilateral Investment Guarantee Agency (MIGA)
                                    1. International Center for the Settlement of Investment Disputes (ICSID)
                              3. World Trade Organization
                                1. An international organization that deals with rules of trade between nations
                                  1. WTO Principles
                                    1. Trade without discrimination
                                      1. Free trade, gradually, through negotiation
                                        1. Predictability, through binding and transparency
                                          1. Promotion of fair competition
                                            1. Encouragement of development and economic reform
                                          2. Organisation for Economic Cooperation and Development
                                            1. Group of developed countries dedicated to promoting economic expansion in its member nations
                                            2. Economic Integration Agreements
                                              1. Free Trade Area (FTA): Area in which members have been eliminated, but members keep their external tariffs
                                                1. Customs Union: collaboration that adds common external tariffs to an FTA
                                                  1. Common Market: customs union that includes mobility of services, people and capital
                                                    1. Complete Economic Integration integration on economic and political levels
                                                    2. Examples
                                                      1. North American Free Trade Agreement (NAFTA), Mercosur, Association of Southeast Asian Nations (ASEAN)
                                                    3. The European Union
                                                      1. EU Development
                                                        1. Established in 1993 by the EC in the Maastricht Treaty
                                                        2. Impact on IB
                                                          1. Introduced common currency (Euro), eliminated shared border taxes, the Eu is the world’s largest trading economy
                                                          2. 27 european countries committed to economic and political integration
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