50 terms

Internationalized Trade By: Jenna Lame

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Terms in this set (...)

Economic globalization
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?
Comparative advantage
When a person or business has the resources to produce a good or service more efficiently than another
Protectionism
An economic strategy to limit trade to protect developing industries
Tariffs, import quotas, subsidies
Barriers for protectionism
Free trade
Any kind of trade without barriers of any kind
Protectionists
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?
Free trade
U.S. Policy after WWII
South Korea, Hong Kong, Taiwan, and Singapore
Four tigers
Four tigers
Four countries that followed economic development policies based on increasing trade
Globalization
Economic political cultural and social transformation is occurring throughout the world
NAFTA
Free trade agreement between Canada, the U.S. And Mexico
WTO
An international organization aimed in liberalizing trade, "Insurance for trades people"
Dumping
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
Food- aid
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
1995
What year did Senegal join the WTO?
agriculture
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?
imported ingredients
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)
outsourcing
A way the companies can transfer some work to other companies for benefits such as lower costs, higher quality, or increased efficiency
insourcing
When foreign companies invest in the U.S.
international trade
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
Free trade
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?
2004
In what year did the U.S. create more jobs than Germany, Japan, Great Britain, Canada, and France combined?
comparative advantage
Saudi Arabia producing petroleum versus crops is and example of this
unemployment, starvation, total economic downturn
Effects of the depression
George Kennan
Who came up with the strategy to contain the Soviet Union?
1944
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)
False
T/F The U.S. has fully eliminated all forms of protectionism.
interdependence
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?