COMECON and Its Establishment

COMECON = Coordinate resource allocation in the Soviet bloc General Agreement on Tariffs and Trade (GATT) = Reciprocal commercial rights and obligations EEC = Expand trade between European countries Marshall Plan = Reconstruction of post-World War II Europe

Nondiscrimination = Concession made to one country must be extended to all Tariff protection = Protect domestic industry from foreign competition Submission of trade disputes to consultation = Resolve conflicts through discussion Periodically held forum for negotiations to reduce trade barriers = Platform for talks on lowering trade obstacles

Kennedy Round = Tariff reductions of 30 to 50 percent on various goods Tokyo Round = Focused on non-tariff barriers like subsidies and customs procedures Uruguay Round = Established the World Trade Organization (WTO) Doha Round = Aimed at reducing agricultural subsidies and tariffs

<p>Multilateral trade negotiations = Discussions involving multiple countries at once Most favored nation clause = Ensures equal treatment among trading partners Common market = Group of countries with free movement of goods, services, and people Free trade zone = Region where goods can be traded without tariffs or quotas</p> Signup and view all the answers

<p>COMECON = No specific headquarters location GATT = Headquartered in Geneva WTO = Based in Geneva, Switzerland EEC = Brussels, Belgium</p> Signup and view all the answers

<p>IMF = Organization headquartered in Washington, D.C. that helps protect countries' currencies against fluctuations Quota = Determines a nation's borrowing capacity with the IMF, consisting of 25% gold and 75% currency Special Drawing Rights (SDRs) = Credits available to countries with balance-of-payments deficits, created by the IMF in the late 1960s World Bank = Owned by approximately 130 countries and extends loans for economic development projects</p> Signup and view all the answers

<p>Non-tariff measures = Include quotas, export controls, and cartelization, major difficulties in international trade today Bilateral agreements = Trade agreements between two nations Multilateral agreements = Trade agreements among many nations Monetary agreements = Of enormous significance today, include the International Monetary Fund and the World Bank</p> Signup and view all the answers

<p>IMF borrowing rules = A country can borrow up to 125% of its quota in gold or convertible currency, advances over 25% available if deficit reduction efforts are made World Bank loans = Financed up to 50% of economic development projects for less developed countries, made to governments or institutions under government guarantee IDA affiliation = Affiliate of the World Bank that extends loans under conventional terms commensurate with interest rates GATT focus areas = Future rounds will be concerned with non-tariff measures, agricultural support programs, and trade problems of less developed countries</p> Signup and view all the answers

<p>IMF = Washington, D.C. World Bank = Washington, D.C. GATT = Not mentioned in the text IDA = Not mentioned in the text</p> Signup and view all the answers

<p>Fundamental economic development projects financed by World Bank = Irrigation and drainage systems, schools, roads, telephone lines, energy-related programs IMF's role in protecting currencies = Temporarily lending funds to countries facing balance-of-payments problems Special Drawing Rights (SDRs) purpose = Allowing deficit countries to borrow from surplus countries GATT focus on non-tariff measures = Quotas, export controls, cartelization</p> Signup and view all the answers