International Economics Quiz 2

What Organization’s purpose is stated:
To promote social justice and internationally recognized human and labor rights by improving economic and working conditions, with the ultimate goal of achieving full employment and lasting peace

ILO

When and where was the ILO created

1919, Treaty of Versailles

It is the only international institution that includes representatives from governments, employers, and workers in its executive bodies

ILO

was created in 1962 by the ILO to combat child labor, which perpetuates poverty and hinders national economies 

IPEC

What was this ILO creation called
It required all member nations to respect core labor standards, including freedom of association, elimination of forced labor, and non-discrimination

1998 Declaration on Fundamental Principles and Rights at Work

What does ILO stand for 

International Labor organization

What organizations purpose is stated:
foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world

IMF

When and where was the IMF created

1944, bretton woods conference

What Organization is being described:
Voting power is based on economic size and financial contributions; for example, the U.S. has 15% of the vote and veto power over decisions

IMF

What organization is being described:
In 1970s Its focus moved from exchange rate supervision to broader macroeconomic oversight and crisis lending

IMF

What does IMF stand for

International Monetary Fund

What organizations purpose is stated:
To reduce extreme poverty and promote shared prosperity through development loans, technical assistance, and policy advice

World Bank

When and where was the World Bank created

1944, Bretton woods conference

What organizations goals for 2030 are:
1) Reduce extreme poverty to below 3% globally, and (2) promote income growth among the bottom 40% in each country

World Bank

What are the 5 arms of the World Bank group

The International Bank for Reconstruction and Development (IBRD), The International Development Association (IDA), The International Finance Corporation (IFC), The Multilateral Investment Guarantee Agency (MIGA), The International Centre for Settlement of Investment Disputes (ICSID)

What organization has faced this criticism:
That policy reforms attached to loans often favor privatization and foreign investors, which can increase inequality or reduce access to essential services

World Bank

What organizations purpose is being described:
Was created to promote economic growth, trade, and social progress through data, analysis, and policy recommendations, especially for its member states

OECD

What was the origin of the OECD:

Started in 1948 as OEEC (part of marshall plan), became OECD in 1961 (for broader membership)

What does OECD stand for

Organization for economic co-operation and development

What are the 6 main focuses of OECD research

Economics, society, public finances, innovation, sustainability, and governance

What organization is this a criticism of:
It is often seen as a “club of rich countries” and promotes neoliberal policies like cutting public spending and labor market deregulation

OECD

What organizations purpose is being described
To regulate international trade, ensure trade flows freely and predictably, and resolve trade disputes among nations

WTO

What was the origin of the WTO

replaced GATT in 1995 (includes 164 member countries)

What organization settles disputes this way:
Through a formal system that includes an appellate body acting like an international trade court

WTO

What treaty officially created the European Union?

The Maastricht Treaty in 1992 (expanded the European Economic Community into the European Union)

When did the schengen agreement take effect

1995

How many countries are members of the EU

27

What were the first steps toward European integration post-WWII?

Benelux Union in 1944, European Coal and Steel Union in 1954

What organization preceded the African Union and helped initiate the AEC

organisation for African Unity (OAU) founded in 1963

It is a common currency used in parts of West and Central Africa, originally tied to the French franc and now pegged to the euro

CFA franc

When was the AEC created

1991

What does ASEAN stand for?

Association of southeast asian nations

How many member states are in the ASEAN.

10 (Bruneli Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam)

The ______ aims to reduce tariffs and increase regional trade and investment in southeast Asia

ASEAN Free Trade Area (AFTA)

Does ASEAN have a single currency or enforcement body like the EU?

no

Why is ASEAN considered economically significant despite being made up of developing nations?

(Combined) 6th largest economy, 662 million people

Who are the founding members of Mercosur?

Argentina, Brazil, Paraguay, and Uruguay

What countries Membership to mercosur was suspended in 2016

Venezuela

How are Mercosur decisions made?

By consensus, with each member holding veto power

What trade block does this recent shift describe
A move toward liberalization, including efforts to reach trade agreements with blocs like the EU

Mercosur

What was NAFTA replaced with

USMCA

What does he CP-TPP stand for

Comprehensive and Progressive Agreement for Trans-Pacific Partnership

What Trading block is being described
It includes 30 chapters covering trade in goods and services, IP rights, e-commerce, labor, environmental standards, and dispute resolution

CP-TPP

What trading block has these members:

Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore,

Vietnam, and the UK

CP-TPP

_____ is when individuals or companies invest in productive activities in other countries, such as building factories, extracting resources, or entering joint ventures

FDI

________ is the amount invested in a country by foreigners

FDI at home

______ is what residents of one country invest in other countries

FDI Abroad

J
To reduce labor costs, access foreign markets, avoid tariffs, or obtain natural resources not found in their home country

Why do companies engage in FDI

J
It gives the investor part ownership of a company and potential for dividends or capital gains/losses

Buying a stock

A ____ is a loan from an investor to a company or government in exchange for interest payments and future repayment

Bond

J
Due to exchange rate volatility, tax and legal complexity, and familiarity with the home market

Why most investors choose to invest domestically 

What are the 5 types of capital investment

FDI (Foreign direct Investment), Stocks, Bonds, Real Estate, Currency

What were the 5 Financial crisis listed in class

The Crash of 1929, Latin American Crisis of the 1980s, Asian Financial Crisis of the 1997, The Subprime Crisis of 2007-2008, The Euro Crisis of 2011

What crisis is being described Over-optimism, easy bank credit, loose regulation, and overinvestment in a slowing real economy caused an unsustainable bubble in the U.S. stock market.

Crash of 1929

What crisis did this trigger:
U.S. inflation and oil shocks, followed by large capital inflows into Latin America and poor use of borrowed funds.

Latin American Crissis of 1980s

J
in Latin American Crisis of 1980s
They funneled billions into Latin America seeking better returns, but pulled out their capital suddenly when returns disappointed ("sudden stop").

What was the role of U.S Investors and Banks

What three countries were most severly effected in the Latin Amarican Crisis of 1980s

Mexico, Brazil, Argentina

What structural issue worsened the Latin American crisis?

Governments misused funds for political gain or corruption

How did the Asian Financial Crisis Begin

A speculative attack on the Thai Baht (exposed unsustainable debt levels and overvaluation, leading to devaluation and panic.)

J
Loans given to borrowers with poor credit, often at variable rates, bundled into securities and misrepresented as low-risk investments.

Subprime mortgages 

What is Chiles HDI and HDI Rank?

.860, 44th

What Product is chile a world leader in producing

Copper

What is the population of chile and its growth rate

18.6 Million (5th out of 13), 0.61

What was Chiles Real (PPP) GDP and Rank

595.6 Billion, 43rd

What is Chiles GDP per capita and rank

30.2 thousand, 78th

What is the Chiles Benchmark interest rate

4.75%

What percent of Chiles GDP is derived from agricultre, Industry, and Services

3.9% (agriculture), 30.1% (industry), 56.1% (service)

What is the level of inequity in Chile according to the Gini Index

43, ranked 27 (similar to US)

What share of Chilie’s GDP is from exports

33.4%

what share of Chilie’s GDP comes form imports

30.04%

What is Chile’s net trade Balance

+3.32%

What are the top imports of Chile

refined petroleum, crude petroleum, cars, garments, trucks

what are the tip Exports of Chile

 copper ore, refined copper, fish, carbonates, pitted fruits

What countries does Chile export the most to?

China (39%), USA (16%), Japan (7%), South Korea (6%), Brazil (4%)

Who are chiles biggest import partners

China (23%), USA (20%), Brazil (10%), Argentina (7%), Germany (5%)

What trading blocks does Chile Belong to

APEC, CP-TPP, OECD, Pacific alliance, Mercosur

What trading block do these countries belong to?
Argentina, Brazil, Paraguay, and Uruguay

Mercosur

What trading block do these countries belong to?
Bruneli Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam

ASEAN

What are the Organizations we talked about in class

International Labour Organisation, International Monetary Fund, World Bank, OECD, World Trade Organization

What are the 6 Trading blocks we talked about in class

EU (European Union), AEC (African Economic Community), ASEAN, Mercosur, USMCA (NAFTA), CP-TPP