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CH.5 International Economic Integration - Coggle Diagram
CH.5 International Economic Integration
Globalization and Economic Activity
Market economy grows with competition
Specialization of factors of production
Growth of trade
Influences financial markets
Billions of dollars of capital flow
Foreign Direct Investment
WTO, IMF AND WB
World Trade Organization: responsible for
international trade agreements and for resolving trade disputes
International Monetary Fund: supports the world’s financial stability by providing financial assistance
World Bank: promotion of economic development by
providing long-term loans to poor countries.
Investment loans and Adjustment loans
Economic Integration
Also called "regional integration"
Elimination of trade barriers
Free-Trade Areas
Custom unions
brings specialization and increased competitions
Economic and Monetary Union
union between countries with visions called "monetarist" and "economists"
3 stages of EMU
Stage 3: 1999 creation of euro
common currency
The European Union
Single Market
Increases competition and productivity to boost member economies
Single European Act
NAFTA
came into force 1994
Canada, USA, Mexico trade barriers
Economic Integration
among Developing Countries
Help growth and fundamental structure changes
Africa, Asia, Latin America,
Carribbean and Middle East
WTO
encourage further trade liberalization
ensure transparency
Cooperate with major institutions
Assist developing countries