Global Players and International Free Trade
- Created by: lewis.mackk05
- Created on: 02-11-22 17:23
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- Global Players and International Free Trade
- International Trading Blocs
- Trading Blocs are Groups of countries formed to remove tarriffs between members or agreements on tarriffs on imports from non-member states to protect member states industries
- Examples include the EU, ASEAN, and NAFTA
- NAFTA: USA, Canada and Mexico
- They enable free trade between geographically close countries. This can lead to lower prices, increased export potential, higher growth, economies of scale and greater competition
- The International Monetary Fund (IMF)
- Its Purpose is to maintain financial stability
- In return for loans, it tries to encourage privatisation within countries to generate greater wealth
- Many believe this policy has forced poorer countries to sell their assets to wealthy TNCs
- Exists to stabilise currencies in order to maintain economic growth and steady exchange rates
- The World Trade Organisation (WTO)
- Purpose is to promote free flow of trade to prompt economic growth, especially in poorer countries
- The WTO believes in free trade and advocates removing barriers
- Trade Liberalisation
- Seeks to encourage all trade between countries free of tariffs, quotas or other restrictions
- The World Bank
- Its purpose is to use loans from HICs to provide loans for development
- Recipient countries have to agree certain conditions concerning repayment and economic growth
- Also focuses on natural disasters and humanitarian emergencies
- Global Players
- Increasingly, decisions that affect people locally are being made by global players: these are players in globalisation
- 3 Global Organisations established in 1945- following WW2 to promote economic development and restore/ maintain financial stability.
- They remain fundamental to global decision making today
- International Trading Blocs
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