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Chapter 5: International Economic Integrations - Coggle Diagram
Chapter 5: International Economic Integrations
World Trade Organization
GATT favored trade protection through tariffs and sought to remove import quotas and other quantitative and non-tariff trade barriers
Encourages free trade between member states
Regulates and reduces tariffs on traded goods
The WTO focuses on all goods, services,
Economic integration in Europe
Free movements of goods and services
free movement of capital with restrictions on the
movement of capital between member states are prohibited.
The Single Market
Globalization
significant aspect of globalization is the growth of trade among national economies
Includes labor movement, technology transfer across
international borders
integration of all nations through trade and
capital flows
Many demonstrators saw globalization as threatening their own jobs from low-cost competition.
Globalizations opens market at a low cost competition by removing trade barriers
Globalization particularly influences financial markets
Economic integrations
The degree of success will depend on the nature and
composition of the union
The relative benefits of economic integration are treated in the academic literature in terms of customs unions and free-trade areas
Is the cooperation and coordination among countries
World Bank
Adjusmnet loans:designed to support structural reforms in a specific sector or the economy as a whole,
o provide the necessary infrastructure to
encourage private capital inflows and secure sustainable development.
World Bank Group is made up of five institutions
The World Bank provides two main types of loans: 1. Investment loans and 2. Adjustment loans
Economic Activity
Large firms in a globalized economy have subsidiaries in many countries and
compete in global markets rather than in segmented national markets.
world trade continued to grow faster bc of globalization
International trade theory tells us that free trade allows each country to
benefit by exploiting its comparative advantage. W
market economy is increased efficiency through competition and specialization of factors of production
International Monetary System
Help packages are imposed rather than negotiated
It also provides shortterm financing on the condition that the country
It examines the economies of all its member states on a regular basis.
The World Bank was established in 1945 along with the IMF
NAFTA
It is not a common market
A free-trade
agreement between the United States,Canada and Mexico
The North American Free Trade Agreement