SSP 3 QUIZ REVIEWER 🧚

GLOBALIZATION

GLOBALIZATION

ECONOMIC GLOBALIZATION

JULY 1944

THE BRETTON WOODS CONFERENCE (JULY 1944)

General Agreement on Tariffs and Trade (GATT 1947)

BRETTON WOODS INSTITUTION

1945

to promote global monetary cooperation and international financial stability.

INTERNATIONAL MONETARY FUND

To provide short-term loans to prevent devaluation and retain the state's fixed exchange rate

BALANCE OF PAYMENTS DEFICIT

BALANCE OF PAYMENT SURPLUS

IMF resource expansion to enhance capacity for financial crisis management, Increase quota and voting power of emerging economies within the institution

Doubling of the IMF quota, Shifting quota shares, Preserved quota and voting shares of poorest member states

The status quo of power relations remain intact as the USA remains to vote shares constituting its veto power but not in the case of the BRIC countries as a bloc (Brazil, Russia, India & China), Dominated by the West; criticized for marginalizing the South and failing to include emerging economies in its decision-making.

BALANCE OF PAYMENT DEFICIT

INTERNATIONAL MONETARY FUND

WORLD BANK

IBRD (International Bank for Reconstruction and Development) - provides lending to middle-income and credit-worthy low-income countries., IDA (International Development Association) - grants credits and loans to lowest-income countries

To reduce extreme poverty while addressing the imperfections of global capital markets

Severe macroeconomic distortions suffered by loan recipients and no statistical evidence of per capital growth improving from increased. structural adjustment lending., Programs have been accused of worsening the state of poverty and underdevelopment of recipient countries.

To avoid trade wars by raising protectionist barriers (protectionism - economic policy restricting imports from other countries through methods such as tarrifs on imported goods, import quotas, and other gov'tal regulations)

address the expansion of trade in services, investment and intellectual property, Incapable of providing a strong and efficient system for dispute settlement

INTERNATIONAL MONETARY SYSTEM

adopted by England in 1816 the first international monetary system, Later joined by European countries and United States, functioned as a fixed exchange rate regime where countries determined the gold content of their national currencies which would define the fixed exchange rates

BRETTON WOODS SYSTEM (1944)

1959-1968

JOHN MAYNARD KEYNES

He argued that market generated equilibrium results in unemployment which causes a decrease in demand., This is related in decrease in investment and production.

KEYNESIAN ECONOMICS

CLASSIC ECONOMICS

NEOLIBERALISM

Prime Minister Margaret Thatcher and US President Ronald Raegan