International Division of Labour and Trade

Misch Heerr
Flashcards by , created almost 4 years ago

Most important facts about globalisation

Misch Heerr
Created by Misch Heerr almost 4 years ago
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Question Answer
Forms of protectionism Tariffs, Quotas, Technical regulations, subsidies ....
Cost of protectionism Reduces overall welfare. Unfair for other countries (destroying comparative advantage)
WTO 1. Goals: 2. Pillars: Multilateral agreements are made. 1. Open markets, support free trade 2.1. GATT: Traded goods 2.2. GATS: Traded services 2.3. TRIPS: Intellectual property
IMF 1. Goals 2. Cost 1. Support members in financial crisis 2.Contribution rate being paid Kind of an insurance-cost
World Bank Goals: 1. Grants credits to development projects, 2. increase development, 3. enable private investments in development
OECD Goals: 1. Increase free trade 2. Help development 3. create studies and recommendations
Trade liberalisation Measures to encourage free trade, removal of tariffs and other trade barriers
Forms of trade liberalisation 1. Multilateral (All countries) 2. Regional (geographically close countries) 3. Bilateral (between two countries)
Domestic Treatment WTO principle, whereby domestic products can not be granted regulatory preference to products from other WTO member states.
Most Favoured Nation Principle of the WTO, whereby the removal of a trade barrier in a member state is followed by the removal for all other WTO member states.
Integration: Free Trade Area No Tariffs between members
Integration: Costums Union No tariffs, common import tariffs
Integration: Common market No tariffs, common import tariffs, mobility of production factors
Integration: Currency union No tariffs, common import tariffs, mobility of production factors, common currency
Integration: Complete economic union No Tariffs, common import tariffs, common currency, mobility of production factors, common economic policy
The four freedoms Free trade of: Goods, services labour and capital
Pillars of the EU 1. European Community, economic treaty 2. Common foreign and security policy 3. Justice and police cooperation
Pillars of the swiss trade policy 1. Support market entry abroad (exports) 2. Support of entry in swiss market (import) 3. Supporting countries in integrate in world economy
development aid advantage: Helping the poorest, building infrastructure, advancement of women
development aid disadvantages: is needed where it doesn't work, people get dependent, failure of politics, not creating jobs IT ONLY WORKS WITH A GOOD GOVERNMENT!
Micro Loan Giving a credit to the poorest, they start a business, pay 35% interest rate, start to develop firms. --> CREATING JOBS!