Globalization and World Economies Quiz

JovialEclipse avatar
JovialEclipse
·

Start Quiz

Study Flashcards

12 Questions

What led to food riots in member states of the WTO such as Mexico, Egypt, and Indonesia in 2008?

Increased grain prices due to agricultural subsidies from industrial nations

What were the decision-making processes in the WTO heavily influenced by?

Larger trading powers in the green room

When were the International Monetary Fund (IMF) and the World Bank founded?

After World War II

What was the main goal of the IMF?

To help countries that were in trouble and could not obtain money by any means

What was one of the key elements of the Bretton Woods System?

Expressing currency in terms of gold or gold value to establish a par value

How was the U.S. dollar involved in the Bretton Woods System?

It became the global currency

What was the role of the International Monetary Fund (IMF) in the Bretton Woods System?

Overseeing exchange rates between different currencies

How did the Bretton Woods System impact the exchange rates between different countries?

It established fixed exchange rates with a one-percent margin

Where was the headquarters of the World Trade Organization (WTO) located as of 2008?

Geneva, Switzerland

Which event led to the creation of the World Trade Organization (WTO)?

The Uruguay Round

What was the primary focus of the General Agreement on Tariffs and Trade (GATT)?

Trade goods through multinational trade agreements

What is one of the criticisms of the World Trade Organization (WTO) mentioned in the text?

Inability to address trade barriers created by developed countries

Study Notes

Food Riots and the WTO

  • Food riots in WTO member states like Mexico, Egypt, and Indonesia in 2008 were triggered by sharp increases in food prices, partly due to the impact of WTO trade policies on global food markets.

Decision-Making in the WTO

  • The WTO's decision-making processes are heavily influenced by powerful countries and corporations, which can leads to unfair trade agreements that benefit them at the expense of smaller, developing countries.

Founding of the IMF and World Bank

  • The International Monetary Fund (IMF) and the World Bank were founded in 1944.

Goals of the IMF

  • The main goal of the IMF is to promote international monetary cooperation and exchange rate stability.

The Bretton Woods System

  • One of the key elements of the Bretton Woods System was the pegging of currencies to the US dollar, which was, in turn, pegged to gold at a fixed rate of $35 per ounce.
  • The US dollar played a central role in the Bretton Woods System, serving as a global reserve currency.
  • The IMF played a crucial role in the Bretton Woods System, ensuring that countries adhered to the fixed exchange rate system.
  • The Bretton Woods System fixed exchange rates between different countries, which helped to promote international trade and investment.

WTO Headquarters and History

  • As of 2008, the headquarters of the World Trade Organization (WTO) was located in Geneva, Switzerland.
  • The WTO was established as a result of the Uruguay Round of trade negotiations, which concluded in 1994.
  • The primary focus of the General Agreement on Tariffs and Trade (GATT), the precursor to the WTO, was to promote free trade and reduce tariffs and other trade barriers.

Criticisms of the WTO

  • One of the criticisms of the WTO is that it prioritizes the interests of powerful countries and corporations over those of smaller, developing countries and marginalized communities.

Test your knowledge on the impact of global economies on the world market and finance, including how the strength of powerful economies and crises in weaker economies affect other countries. Understand the significance of the interconnectedness of world economies.

Make Your Own Quizzes and Flashcards

Convert your notes into interactive study material.

Get started for free

More Quizzes Like This

The Globalization of World Economics Quiz
5 questions
Quiz
5 questions

Quiz

IllustriousFuchsia avatar
IllustriousFuchsia
Overview of International Marketing
8 questions
Use Quizgecko on...
Browser
Browser