Trade and Finance Overview

<p>They often exacerbate economic hardship in developing countries. (D)</p> Signup and view all the answers

<p>Dismantling of the Bretton Woods system (D)</p> Signup and view all the answers

<p>Wealthy nations, particularly the U.S., hold a disproportionate amount of power. (A)</p> Signup and view all the answers

<p>Complex negotiations due to growing membership (B)</p> Signup and view all the answers

<p>Spending cuts and tax increases (A)</p> Signup and view all the answers

<p>It promotes market-oriented reforms and may lead to social welfare concerns. (B)</p> Signup and view all the answers

<p>Concentration of wealth in financial hubs (B)</p> Signup and view all the answers

<p>The World Trade Organization (WTO) (B)</p> Signup and view all the answers

<p>By the influence of major powers like the United States (B)</p> Signup and view all the answers

<p>Deepening inequality and social unrest (B)</p> Signup and view all the answers

<p>Led to greater financial instability (D)</p> Signup and view all the answers

<p>They increased the complexity of trade negotiations. (C)</p> Signup and view all the answers

<p>To ensure finance served trade instead of dominating it (A)</p> Signup and view all the answers

<p>Promoting a structured, rules-based system for trade (A)</p> Signup and view all the answers

<p>To ensure all countries are treated equally by preventing favoritism. (A)</p> Signup and view all the answers

<p>Aid for Trade Initiative (B)</p> Signup and view all the answers

<p>Offering short-term financial assistance (D)</p> Signup and view all the answers

<p>Imported goods must be treated equally to domestically produced goods. (A)</p> Signup and view all the answers

<p>Ministerial Conference (A)</p> Signup and view all the answers

<p>Through trade liberalization (C)</p> Signup and view all the answers

<p>Overseeing daily operations and functioning of the WTO. (B)</p> Signup and view all the answers

<p>Fostering long-term economic development (B)</p> Signup and view all the answers

<p>They have undermined the MFN principle, creating trade asymmetries. (B)</p> Signup and view all the answers

<p>Offering financial aid for poverty reduction (B)</p> Signup and view all the answers

<p>It provides technical and administrative support without decision-making powers. (C)</p> Signup and view all the answers

<p>Contributed to rapid economic development (D)</p> Signup and view all the answers

<p>Providing infrastructure loans and grants (C)</p> Signup and view all the answers

<p>Applying different safety standards to imported goods. (B)</p> Signup and view all the answers

<p>National treatment principle. (B)</p> Signup and view all the answers

<p>It led to the establishment of the WTO. (C)</p> Signup and view all the answers

<p>Doha Development Round (D)</p> Signup and view all the answers

<p>Its rules typically favor industrialized nations. (C)</p> Signup and view all the answers

<p>It introduced an Anti-Dumping Agreement. (A)</p> Signup and view all the answers

<p>They protect domestic farmers but harm developing countries dependent on agricultural exports. (D)</p> Signup and view all the answers

<p>Modern issues like digital trade and climate change. (A)</p> Signup and view all the answers

<p>It included agreements on non-tariff barriers. (C)</p> Signup and view all the answers

<p>A move towards bilateral and regional trade agreements. (A)</p> Signup and view all the answers

<p>The Managing Director of the IMF is always a European citizen. (D)</p> Signup and view all the answers

<p>It finances projects that lead to environmental damage. (B)</p> Signup and view all the answers

<p>They are seen as a violation of national sovereignty by some countries. (B)</p> Signup and view all the answers

<p>Only serving the interests of developed nations. (A)</p> Signup and view all the answers

<p>Ensuring their roles remain relevant amidst global changes. (B)</p> Signup and view all the answers

<p>By implementing more stringent environmental safeguards. (A)</p> Signup and view all the answers

<p>Due to the perception of foreign interference in domestic affairs. (D)</p> Signup and view all the answers

<p>Founding of the IMF and World Bank with agreed leadership conventions. (C)</p> Signup and view all the answers

A post-World War II economic system established to maintain stable global trade and finance by regulating capital flows and exchange rates.

Financial controls aimed at stabilizing exchange rates and limiting the movement of capital across borders.

The shift from regulated capital flows under Bretton Woods to a system where capital can move freely around the world.

A global agreement that aimed to reduce trade barriers between countries.

A series of negotiations under GATT that significantly expanded its scope, leading to the establishment of the WTO.

The successor to GATT, a more formal and powerful international organization responsible for governing global trade.

Non-tariff barriers like quotas and subsidies that hinder trade without using tariffs.

The process of managing and regulating international economic activity, including trade and finance.

A principle that requires WTO members to apply the same tariffs to imports from all other WTO members, regardless of their origin.

A WTO principle ensuring imported goods are treated equally to domestically produced goods once they've entered the market.

The highest decision-making body of the WTO, composed of representatives from all member countries. It meets every two years to make major decisions and set the organization’s agenda.

The body that oversees the day-to-day functioning of the WTO, composed of ambassadors or senior officials from member countries. It also functions as the Dispute Settlement Body (DSB) and the Trade Policy Review Body (TPRB).

Specialized groups within the WTO that focus on specific areas like agriculture, intellectual property, or trade in services.

The administrative and technical support arm of the WTO located in Geneva. It does not have decision-making powers.

The first round of GATT established foundational rules and achieved tariff reductions among 23 nations.

This round focused on further reducing tariffs and introduced an agreement to prevent unfair pricing in international trade.

This round expanded negotiations to include non-tariff barriers, resulting in agreements on subsidies and technical barriers to trade.

The most ambitious GATT round, it led to the creation of the WTO in 1995, expanding trade rules to include services, intellectual property, and agriculture.

Launched with a focus on addressing the needs of developing countries, it remains stalled due to disagreements over agricultural subsidies, market access, and non-agricultural goods liberalization.

WTO rules often favor industrialized nations, leaving developing countries with limited bargaining power.

Critics argue that global trade governance prioritizes economic growth over labor rights, environmental protection, and equitable development.

The WTO struggles to address modern challenges like climate change, digital trade, and global inequality.

The World Trade Organization (WTO) aims to reduce tariffs and other trade barriers, creating a structured system for global trade. This helps in promoting stability, reducing uncertainty, and increasing global trade volumes.

Programs like the Aid for Trade Initiative and special treatment provisions aim to help developing nations integrate into the global trading system.

Trade liberalization, facilitated by global trade governance, has been linked to poverty reduction and economic growth. For example, increased trade openness in Asia (like China and Vietnam) has driven economic development and lifted millions out of poverty.

The International Monetary Fund (IMF) provides financial assistance to countries experiencing balance-of-payments crises. This short-term lending aims to stabilize economies and prevent currency crises.

The World Bank focuses on long-term economic development. It provides loans and grants for infrastructure projects, poverty reduction, education, health, and environmental sustainability. This helps developing countries build the necessary infrastructure for growth.

The IMF uses surveillance and policy advice to maintain global economic stability. By monitoring the global economy, providing recommendations, and fostering discussion, the IMF aims to prevent global financial instability.

The World Bank supports global efforts to reduce poverty and promote shared prosperity. Its projects align with the Sustainable Development Goals (SDGs).

The IMF and World Bank were established at Bretton Woods to manage economic crises and promote global economic stability and growth.

The IMF and World Bank provide guidance and assistance to member countries to strengthen their economic frameworks. This includes training officials, enhancing fiscal management, and improving financial sector regulation.

The IMF and World Bank work together to coordinate global economic policies, aiming to reduce the risk of destabilizing conflicts within the international financial system.

Loans provided by the IMF and World Bank to countries are conditional, meaning they come with specific requirements.

Austerity measures involve reducing government spending and increasing taxes to balance budgets. Critics argue that these measures can worsen economic hardships, especially in developing countries.

The IMF and World Bank have been criticized for prioritizing the interests of developed countries, leading to power disparities and limited influence for developing nations.

The IMF Managing Director oversees the IMF's operations and represents the institution globally, while the World Bank President leads the World Bank's efforts in development.

The selection processes for the IMF Managing Director and the World Bank President have been criticized for favoring certain countries or groups, highlighting a lack of transparency and accountability.

The IMF and World Bank have been criticized for promoting market-oriented reforms, arguing that these can negatively impact social welfare and local economies.

An informal agreement where the Managing Director of the IMF is always a European citizen and the President of the World Bank is always a U.S. citizen. This tradition reflects the power dynamics after World War II.

The World Bank has been criticized for financing projects that cause environmental damage, such as large-scale infrastructure projects, displacing communities and harming ecosystems.

The IMF and World Bank's policies are sometimes seen as interfering with national sovereignty, as countries are pressured to implement foreign-imposed economic policies, leading to tension and public backlash.

The IMF and World Bank's operations aim to stabilize the global economy and promote development, but there are ongoing debates surrounding their impartiality, effectiveness, and inclusivity for all members, especially developing nations.

The rules and regulations surrounding international trade, including managing trade barriers, negotiating agreements, and ensuring fair practices.

The regulations and management of global financial systems, including capital flow, exchange rates, and international financial institutions.