Studied by 2 people
IMF
Provides loans to governments to stabilise the economy
World bank
Provides loans for development
1948 GATT
An agreement on tariff reduction and agricultural subsidies
Allows textiles and clothing from LICs
2001 Doha development Round
WTO negotiations to lower trade barriers and revise trade rules
Containerisation
Began in 1960s, allows mass movement of goods at low prices largest ever is MSC Irina and it can hold over 24,000 TEUs
Trade blocs
Intergovernmental agreements to reduce trade barriers such as ASEAN (association of south East Asian nations) and the EU
Pros of trade blocs
Bigger markets without extra taxes
Merging to form TNCs to lower production costs and increase profit
Protection of domestic manufacturing from foreign competitors e.g. bra wars between china and eu in 2007
Cons of trade bloc membership
Loss of sovereignty as countries are impacted by bloc policies which aren’t trade related
interdependence can have consequences in the event of trade disruption
Countries must concede to foreign firms at local companies’ expense for consumer benefit
Sovereignty
Control over territorial affairs
