International Trade Organizations Quiz

The degree to which national borders are crossed by trade and financial flows. It measures the volume of these flows over time.

The geographical spread of trade and finance. It measures how widely these flows reach across different countries and regions.

The idea that economic globalization benefits all countries and people equally, creating opportunities for wealth and prosperity for everyone.

The argument that globalization primarily benefits a small elite, while leaving many countries and individuals behind.

The idea that globalization primarily helps the wealthiest countries and regions, while leaving others underdeveloped and marginalized.

The argument that economic globalization has led to a significant increase in global trade since the 1970s, indicating greater integration of national economies.

The process of national economies becoming interconnected through trade, finance, and other economic activities.

The debate over whether economic globalization benefits everyone equally or primarily benefits a select few.

An economic crisis that led to high unemployment rates and social unrest.

An ideology characterized by extreme nationalism, authoritarianism, and militarism. It often involves suppressing opposition and promoting social and racial inequality.

An economist who believed that government intervention was needed to regulate and stabilize the global economy, particularly trade, to prevent further economic crises and social unrest.

A proposed international organization designed to facilitate free trade and regulate global trade practices. It was intended to replace the existing General Agreement on Tariffs and Trade (GATT).

The General Agreement on Tariffs and Trade (GATT) was a multilateral agreement regulating international trade. It was designed to reduce barriers to international trade and promote free trade.

A permanent international organization founded to regulate and oversee global trade, replacing the GATT. It aims to enforce trade rules and settle disputes between member countries.

The process of increasing global trade through the reduction of trade barriers and the expansion of trade networks.

A set of rules, regulations, and agreements established by international organizations, such as the WTO, governing and influencing international trade practices.

The process of a country becoming a member of the World Trade Organization (WTO). This involves meeting certain criteria and negotiating trade agreements.

Agreements involving only two countries, as opposed to a global agreement.

A situation where one side has more power and influence than the other in a negotiation or relationship.

The WTO's powerful members have been using the accession process to impose strict conditions on new members, sometimes requiring them to change their domestic laws to conform to WTO rules.

The decision to join the WTO can be influenced by political pressures, as some developing countries feel pressured to demonstrate their commitment to the existing global economic order.

The goal of the WTO is to create a more straightforward and efficient system for global free trade by reducing complex bilateral negotiations, leading to less confusion and logjams.

The creation of the WTO from the GATT (General Agreement on Tariffs and Trade) aimed to make international trade negotiations more efficient by creating a central, law-making body.

Joining the WTO often signals to global investors that a country is committed to economic stability and a secure investment environment.

The International Monetary Fund (IMF) was initially conceived as a secondary regulator of global trade, rather than assuming a primary role in market self-regulation of finance.

Activist groups argue that global financial elites utilize offshore financial centers to evade taxes in their home countries.

Tax havens allow multinational corporations to shift profits to low-tax jurisdictions, effectively reducing their tax liability in high-tax countries.

A global minimum corporate tax rate aims to prevent multinational corporations from minimizing their tax burdens by shifting profits to tax havens.

The potential benefits of a global minimum corporate tax rate include increased tax revenue for governments and reduced tax avoidance by corporations.

Tax havens are often criticized for hindering development programs by depriving governments of necessary tax revenue.

Tax havens are seen as a drain on development programs because they make it difficult for governments to collect sufficient tax revenue to fund essential services.

Profit-shifting is the practice of multinational corporations manipulating their financial arrangements to declare profits in tax havens with lower tax rates, rather than the countries where their actual economic activities are conducted.

Tax havens are jurisdictions with exceptionally low or no corporate tax rates, which attract multinational corporations seeking to minimize tax liability.

A 'renegade jurisdiction' refers to a country or territory that refuses to comply with international tax agreements, potentially disrupting the effectiveness of global tax cooperation.

The 'free-rider problem' arises when some jurisdictions benefit from international tax agreements without contributing to the enforcement or implementation of those agreements.

The 'Biden gamble' refers to the strategy of relying on coordinated support from major economies to enforce a global minimum corporate tax rate, assuming that companies would rather avoid exclusion from lucrative markets than stay in tax havens.

Legal loopholes are gaps or ambiguities in tax laws that allow individuals or corporations to minimize their tax liability, sometimes legally but ethically questionable.

The threat of 'inexhaustible loopholes' refers to the ongoing potential for tax havens to find new ways to evade tax obligations, posing a challenge to global tax enforcement.

Using shell corporations in low-tax jurisdictions to manage intellectual property and charge high fees to the parent company for its use.

The idea that a global minimum corporate tax rate can bring stability to the global tax system, preventing companies from seeking out loopholes and reducing the need for constant revisions.

This refers to a situation where a company structures itself to move profits to low-tax jurisdictions, often with minimal economic activity, to pay less overall tax.

The argument that tax avoidance practices, especially by multinational corporations, are unethical and undermine fair and equitable tax systems.

The combination of policies that encourage global economic integration, like free trade, foreign investment, and the flow of capital.

A situation where international rules, agreements, and organizations are challenged or breached, leading to a less stable global order.

The idea that global financial markets have significant influence over national governments, especially their economic policies.