Economic Integration and Trade Liberalization

Practice flashcards for key concepts related to economic integration, trade liberalization, and various forms of aid and financing.

Trade liberalisation occurs when countries remove barriers to trade such as __, tariffs, quotas, and administrative barriers.

subsidies

Economic integration usually involves trade liberalisation as a __ step.

first

Increased imports can lead to lower prices for consumers and __ products.

improve the quantity and quality of

The benefits of increased exports include access to larger markets and higher __.

revenues

The WTO provides special provisions for __ countries to help protect them from the downsides of free trade.

least-developed

Limitations of trade liberalization include issues related to national __ and health, safety, and environment.

security

Import substitution is a protectionist measure that helps a country become __ from imports.

independent

Export promotion aims to support domestic industries so that they become __ industries.

exporting

The benefits of diversification include helping economies bounce back from __ shocks.

external

Development aid provided by NGOs focuses on one issue and partners with __ and other organizations.

governments

Tied aid may be conditional on the receiving country making special arrangements with certain __ from the donor country.

businesses

Debt relief is a type of foreign aid where a country's debt is __ rather than paid back.

cancelled

The IMF maintains global economic stability through economic __, lending, and capacity development.

surveillance

The World Bank aims to reduce poverty by providing low-interest loans and __ to developing countries.

grants

Microfinance refers to a range of financial services aimed at the __ poor.

very

The process of privatisation involves selling government-owned companies to __ owners.

private

Privatisation is assumed to reduce the subsidisation of __-owned enterprises.

state