Week 4 - Financial Institutions

These flashcards cover key vocabulary and concepts related to financial institutions, trade agreements, and their impacts on global economies.

Retaliation

A response to an action, often involving retaliation through raising tariffs after one country implements them.

Unilateral Trade Agreements

Trade agreements made by one country without the consent of others, often benefiting only that country.

Bilateral Trade Agreements

Mutually beneficial trade agreements between two countries, typically reducing tariffs.

Multilateral Trade Agreements

Agreements involving multiple countries that follow a single set of trade rules, such as the USMCA or the European Union.

Tariffs

Taxes imposed on imported goods to protect domestic industries and raise government revenue.

Smoot-Hawley Tariff

An act that raised tariffs on thousands of imported goods in 1930 to protect American jobs but resulted in trade shrinking and higher consumer prices.

Bretton Woods Agreement

A 1944 agreement designed to create a stable global economic system by fixing exchange rates and establishing institutions like the IMF and World Bank.

IMF (International Monetary Fund)

An organization that provides financial assistance and advice to countries facing economic crisis.

WTO (World Trade Organization)

An organization that replaced GATT and governs trade by focusing on reducing tariffs and addressing various trade issues.

Hyper-globalization

An extensive and accelerated level of global economic integration that may compromise national sovereignty and labor rights.