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Contemporary World M7

Terms in this set (31)

play a major role in the social and economic development programs of nations with developing or transitional economies. This role includes advising on development projects, funding them and assisting in their implementation.
international financial institutions (IFIs)
• To reduce global poverty and improve people's living conditions and standards;
• To support sustainable economic, social and institutional development; and
• To promote regional cooperation and integration.
goals and objectives of IFIs
concerned with a specific type of commodity. Their scope only go as far as those commodities are involved.

Examples:
Oil Producing and Exporting Countries (OPEC)
International Telecommunications Union (ITU)
International Sugar Organization International Lead and Zinc Study Group
Commodity or industry-specific organizations
concerned with a specific shared resource. Their scope only go as far as that shared resource is involved.

Examples:
International Boundary and Water Commission (IWBC)
Lake Chad Basin Commission
Mekong River Commission
Commissions and agencies for managing shared resources
concerned with the development efforts of a specific clientele. Their scope only go as far as their beneficiaries are involved.The Asian Development Bank is an example of this type.

Examples:
Inter-American Development Bank (IDB) North American Development Bank (NADBank)
Asian Development Bank
Islamic Development Bank
Development funds and banks
alliances between countries usually done for the purpose of trade. Their scope is usually regional.

Examples:
North American Free Trade Agreement (NAFTA)
US-Israel Free Trade Agreement Mercado Comun del Sur (Mercosur)
Asia-Pacific Economic Cooperation (APEC) Enterprise for the Americas Initiative (EAI)
International trade agreements involving a few nations (regional trade alliances or trade blocs)
IFIs that serve the entire globe.

Examples:
International Monetary Fund (IMF)
World Bank
World Trade Organization
Global organizations for trade, development, and macroeconomic stability
three global organizations playing a major role in international economic relations
• The International Monetary Fund (IMF)
• The World Bank
• The World Trade Organization (WTO)
an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
International Monetary Fund (IMF)
primary purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other.
International Monetary Fund (IMF)
The IMF's fundamental mission is to ensure the stability of the international monetary system. It does so in three ways:
1. Economic Surveillance
2. Lending
3. Capacity Development
a vital source of financial and technical assistance to developing countries around the world.
The World Bank
is not a bank in the ordinary sense but a unique partnership to reduce poverty and support development.
The World Bank
Group comprises five institutions managed by their member countries.
The World Bank
The World Bank Group has set two goals for the world to achieve by 2030:
• End extreme poverty by decreasing the percentage of people living on less than $1.90 a day to no more than 3%.
• Promote shared prosperity by fostering the income growth of the bottom 40% for every country
the only global international organization dealing with the rules of trade between nations.
World Trade Organization (WTO)
goal is to help producers of goods and services, exporters, and importers conduct their business.
World Trade Organization (WTO)
run by its member governments. All major decisions are made by the membership as a whole, either by ministers (who usually meet at least once every two years) or by their ambassadors or delegates (who meet regularly in Geneva).
World Trade Organization (WTO)
an organization for trade opening. It is a forum for governments to negotiate trade agreements. It is a place for them to settle trade disputes. It operates a system of trade rules.
World Trade Organization (WTO)
two or more countries liberalize trade in a selected group of product categories.
Partial trade agreement
trade in goods and services fully liberalized between two or more countries.
Free trade area (FTA)
an FTA plus a common external tariff (CET).
Customs union (CU)
a CU plus free mobility of factors of production
Common market
common market with coordination of macroeconomic policies (including common currency, harmonization of standards, and regulations)
Economic Union
IFIs still receive criticism and there are generally two areas:
1. Globalization is considered dangerous and should be limited.
2. International institutions are undemocratic: decision-making is closed to participation by civic and social groups, and thus doesn't focus on the most vulnerable groups.
a company engaged in the business of dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange.
financial institutions
True or False:

Typical examples of normal financial institutions include BANKS, credit unions, investment companies, brokerage firms, insurance companies, etc.
True
play a major role in the social and economic development programs of nations with developing or transitional economies. This role includes advising on development projects, funding them and assisting in their implementation.
International financial institutions (IFIs)
a bank that operates at the international level that performs the function of aiding developing countries achieve social and economic development.
International financial institutions (IFIs)
IFIs' five categories:
commodity or industry-specific organizations,
commissions and agencies managing shared resources,
development funds and banks,
international trade agreements involving a few nations,
and global organizations for trade, development, and macroeconomic stability.
the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other.
The international monetary system
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