1.2: The Emergence of Global Institutions Flashcards
Why do institutions need to be established in the context of globalization?
Institutions are needed to help manage, regulate, and police the global marketplace, as well as to promote multinational treaties that govern the global business system.
What are some of the important global institutions created over the past 50 years?
Important global institutions include the General Agreement on Tariffs and Trade (GATT) and its successor, the World Trade Organization (WTO); the International Monetary Fund (IMF); the World Bank; and the United Nations (UN).
What is the primary responsibility of the World Trade Organization (WTO)?
The WTO is primarily responsible for policing the world trading system and ensuring that nation-states adhere to the rules laid down in trade treaties signed by WTO member-states.
Why is the role of the WTO important in the context of globalization?
The WTO has been instrumental in promoting the lowering of barriers to cross-border trade and investment, which is crucial for the advancement of globalization.
When and where were the International Monetary Fund (IMF) and the World Bank created, and what are their main functions?
Both the IMF and the World Bank were created in 1944 at Bretton Woods, New Hampshire.
The IMF maintains order in the international monetary system, while the World Bank promotes economic development.
What role does the IMF play in assisting troubled economies?
The IMF serves as the lender of last resort to nation-states whose economies are in turmoil and whose currencies are depreciating.
It lends money with policy conditions aimed at stabilizing and growing these economies.
What are some common criticisms leveled against the IMF?
Critics argue that the IMF’s policy recommendations are often inappropriate, and some believe that the IMF’s involvement in national economic policies infringes upon the sovereignty of individual nation-states.
What are the primary purposes of the United Nations (UN) as stated in the UN Charter?
According to the UN Charter, the UN has four main purposes:
**to maintain international peace and security, **
develop friendly relations among nations,
**
cooperate in solving international problems, **
and promote respect for human rights.
How does the UN contribute to the global economy’s development?
The UN works on issues central to the creation of a vibrant global economy, including
**promoting higher standards of living,
**full employment, **
and economic and social progress and development.**
