Flashcards Global Market Integration: Bretton Woods, IFIs, WTO, NAFTA & Revolutions

What is market integration?

The process of connecting the markets of different countries through trade, investment, and financial cooperation.

What are International Financial Institutions (IFIs)?

Organizations that help countries achieve economic growth, reduce poverty, and maintain financial stability.

What is the role of the International Monetary Fund (IMF)?

Helps countries facing financial and balance of payments problems.

What does the World Bank provide?

Financial support for development projects such as education, health, infrastructure, and poverty reduction.

What is the focus of the Asian Development Bank?

Supports economic and social development in Asian countries.

List one importance of International Financial Institutions.

They promote global economic stability.

What was the Bretton Woods System?

An international monetary system created in July 1944 to prevent global economic crises and promote peace through economic cooperation.

Why was the Bretton Woods System created?

To solve problems like unstable currencies, declining international trade, and the need for financial support to rebuild after World War II.

What were the main objectives of the Bretton Woods System?

Maintain stable exchange rates, promote international trade, help rebuild economies, and encourage international cooperation.

What institutions were created by the Bretton Woods System?

The International Monetary Fund (IMF) and the World Bank.

What advantages did the Bretton Woods System provide?

Stable exchange rates, increased international trade, faster economic recovery, greater investor confidence, and stronger international cooperation.

What event effectively ended the Bretton Woods System?

The Nixon Shock in 1971, when the U.S. ended the dollar's convertibility into gold.

What was the General Agreement on Tariffs and Trade (GATT)?

Established in 1947 to reduce tariffs and other trade barriers among countries to promote free and fair international trade.

What were the objectives of GATT?

Reduce tariffs, remove trade barriers, encourage international trade, and promote economic growth.

What is the World Trade Organization (WTO)?

Replaced GATT in 1995 and is responsible for regulating international trade among member countries.

What are the functions of the WTO?

Oversees international trade agreements, settles trade disputes, promotes free trade, monitors trade policies, and provides support to developing countries.

Why is the WTO important?

Encourages global trade, protects trading rights, helps resolve trade conflicts, and promotes economic cooperation.

What is a key takeaway about market integration?

It connects countries through trade, investment, and financial cooperation.

How do International Financial Institutions like the IMF and World Bank help countries?

They help achieve economic stability and development.

What did the Bretton Woods System establish?

The IMF and World Bank, creating a stable global monetary system after World War II.

What did GATT aim to achieve?

To reduce trade barriers and increase international trade.

What is the significance of the WTO's establishment?

It oversees global trade rules and resolves trade disputes.

What is the primary purpose of the World Bank?

To help developing countries reduce poverty and support long-term development.

Where is the headquarters of the World Bank located?

Washington, D.C.

What does the International Monetary Fund (IMF) promote?

Global monetary and financial stability.

When was the IMF created?

In 1944 after the Bretton Woods Conference.

What type of assistance does the IMF provide?

Temporary financial assistance and economic advice.

What is the main difference between the World Bank and the IMF?

The World Bank focuses on long-term development and poverty reduction, while the IMF addresses financial stability and economic difficulties.

What is the OECD and its main goal?

The Organisation for Economic Co-operation and Development promotes better policies and living conditions among its member countries.

When was OPEC founded?

September 14, 1960.

What is the main function of OPEC?

To coordinate petroleum policies among member countries and stabilize oil markets.

Why is OPEC important to the Philippines?

The Philippines heavily depends on imported petroleum, which affects transportation, electricity, and the economy.

What is the European Union (EU)?

A group of 27 European countries that cooperate on economic, social, and security matters.

What treaty established the EU?

The Maastricht Treaty, which took effect on November 1, 1993.

How does NAFTA benefit its member countries?

By reducing barriers to trade and investment among the US, Canada, and Mexico.

What does global market integration involve?

The increasing connection of markets and economies through trade, investment, and technology.

What major shift did the Industrial Revolution bring?

A shift from hand production to machine-based production.

What was a significant effect of the Agricultural Revolution?

The establishment of permanent settlements and food surpluses.

What technological advancements promoted global market integration?

Transportation improvements, communication technologies, and production technologies.

What was one major outcome of the Industrial Revolution?

Increased production capacity and expansion of international trade.

What role did trade agreements play in global market integration?

They helped establish rules and reduce barriers to international trade.

What are the effects of the Industrial Revolution on markets?

More goods produced, faster production, improved transportation, and expanded markets.