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Internationalized Trade By: Jenna Lame
Terms in this set (50)
The spread of trade and making countries' economies indterdependent
Icelands banking system, bail outs, unemployment
Consequences of the global crisis of 2008
There are gains to be had
What is the reason why people trade at the most basic level?
When a person or business has the resources to produce a good or service more efficiently than another
An economic strategy to limit trade to protect developing industries
Tariffs, import quotas, subsidies
Barriers for protectionism
Any kind of trade without barriers of any kind
Global policy before WWII
Hawley- Smoot Tariff
Passed by Congress in 1930 to decrease imports to protect U.S. Companies, but backfired and decreased world trade and unemployment spiked
International Monetary Fund, World Bank
What international institutions were created at the Bretton Woods Conference after WWII?
U.S. Policy after WWII
South Korea, Hong Kong, Taiwan, and Singapore
Four countries that followed economic development policies based on increasing trade
Economic political cultural and social transformation is occurring throughout the world
Free trade agreement between Canada, the U.S. And Mexico
An international organization aimed in liberalizing trade, "Insurance for trades people"
When companies flood markets with good priced far below what they cost to produce
New markets, New opportunities, heightens competition
Effects of global trade
Investors, improved standards, decreased poverty and inequality, decreases chances of war
Supports of free trade
Losers out number winners, competition worsens standards, dependency makes countries vulnerable
Cons against free-trade
When the US provides food to developing countries
Cons agains food- aid
Puts farmers out of business, can potentially hurt agriculture dependent countries
Pros of India's auto industry
Spurred economic growth, created jobs, brought new technologies, lifted poverty
Cons of India's auto industry
Changes in society put millions in poverty, only helps richest 20% of the population
What year did Senegal join the WTO?
What does Senegal's economy highly depend on?
drought and bad crops, employs a majority of the population
What are the risks of having an economy that is highly dependent on agriculture?
What is happening to Senegal? (popular dish example)
loss of employment security/ stability, unemployment, outsourcing
What has economic globalization brought to the U.S.? (negatives)
A way the companies can transfer some work to other companies for benefits such as lower costs, higher quality, or increased efficiency
When foreign companies invest in the U.S.
Leaders of Truman's generation believed that this was crucial to the health of the U.S. economy and the stability of the West
Cons of the WTO
too secretive and undemocratic, richer countries have more power than poorer countries
What is the highest trading status given by the U.S.?
Contain Soviet Union- strengthen Europe's market to sell U.S. goods
Why did the United States change its trade policy after WWII?
cheap labor, outsourcing
Why did the U.S. open factories in Latin America and Asia instead of the U.S.? What is this an example of?
negotiate new trade agreements, regulations, lower barriers
What role does the WTO play in international trade?
increase international trade
What is the purpose of free trade?
farmers can't compete with international companies
What was the downfall of joining the WTO for Senegal?
clothing and textile, computer help desks, and doctors
What jobs from the U.S. are being outsourced?
In what year did the U.S. create more jobs than Germany, Japan, Great Britain, Canada, and France combined?
Saudi Arabia producing petroleum versus crops is and example of this
unemployment, starvation, total economic downturn
Effects of the depression
Who came up with the strategy to contain the Soviet Union?
What year was the IMF and the World Bank established?
General Agreement on Tariffs
What was the first trade agreement between many countries? (later replaced by the WTO)
T/F The U.S. has fully eliminated all forms of protectionism.
When countries' economies all rely on each other
foreign leaders, governments, corporations, and individual spenders
The United States is the world's biggest borrower meaning that it depends on these to fund its spending
India, China, and Brazil
What countries are considered to be "emerging markets" even though they are some of the richest countries in the world?