Economic Forums and Global Orgs

Question 1

What are the roles of the WTO

Answer 1

1. Implement and advance global trade agreements
2. Resolve trade disputed

Question 2

What is the role of the IMF?

Answer 2

To maintain international financial stability, esp. in forex mkts - aid with financial crises

Question 3

What does the IMF actually do?

Answer 3

Intervene in financial crises to minimise risks - adjustment policies.

Question 4

Criticisms of the WTO

Answer 4

1. Cannot enforce new legislation, relies on nations to enforce
2. Fails due to disagreements relating to agriculture

Question 5

Criticisms of the IMF (2)

Answer 5

1. Requires adherence to harsh adjustment policies
2. Harms the vulnerable, protects financial institutions

Question 6

What are adjustment policies

Answer 6

The IMF uses APs to open up mkts before giving fin. assistance. Regulation of size of govt, privatisation, deregulation of mkts and balancing budgets

Question 7

What is the role of the World Bank?

Answer 7

To help poorer countries with their economic development

Question 8

What does the World Bank do?

Answer 8

Helps to fund investment in infrastructure, reducing poverty, and helping countries to adapt to the demands of globalisation

Question 9

What are the goals of the World Bank? (2)

Answer 9

1. To reduce extreme poverty to <3% of the world’s population by 2030
2. To lower global inequality for the lowest 2 quintiles

Question 10

Recent use of the World Bank

Answer 10

Importance has declined - private lending markets have expanded. Played an important role in $47B credit support post-COVID

Question 11

What are the roles of the UN? (3.5)

Answer 11

1. Support greater links between economies
2. Human rights and political freedoms
3. Sustainable Development Goals to reduce poverty and inequality

Question 12

What is the role of the OECD?

Answer 12

1. To conduct and publish research
2. To promote policies for EG and better standards of living

Question 13

What is the G7

Answer 13

Informal forum of seven largest industrialised nations

Question 14

What is the role of the G7

Answer 14

To co-ordinate global macro policy - convergence, influence, crisis management

Question 15

What are some criticisms of the G7?

Answer 15

Doesn’t represent actual important global economic forces

Question 16

What is the G20?

Answer 16

19 biggest economies + EU. 96% of world GDP, 65% of population.

Question 17

What is the role of the G20?

Answer 17

1. Minimise financial crises
2. Tax reform
3. Debt relief

Question 18

ChAFTA features (2)

Answer 18

1. Signed in 2015
2. 98% of Aus X tariff free into China

Question 19

ChAFTA strengths

Answer 19

1. China is Aus biggest trading partner
2. China buys 28% of Aus X
3. Complementary trade - opposite comparative advantages

Question 20

ChAFTA weaknesses (2)

Answer 20

1. Encourages Australia’s dependence on China
2. May lead to exploitation of workers due to temporary migrant worker permittance in China

Question 21

ANZCERTA features (2)

Answer 21

1. Prohibits all protection between AU and NZ
2. Contributed to annual trade increase of 7%

Question 22

ANZCERTA strengths

Answer 22

1. EG - lower tariffs = econ. expansion
2. ANZ Food Authority Agreement increases consumer choice, increasing competitiveness

Question 23

ANZCERTA weaknesses (1)

Answer 23

Disables tariffs on NZ exports, pricing out domestic producers

Question 24

RCEP features (3)

Answer 24

1. 10 ASEAN countries, 5 major trading partners
2. 30% of world pop., 30% GDP
3. 10/15 top Aus trading partners

Question 25

RCEP strengths (3)

Answer 25

1. 59% of Aus two-way trade, 73% of g's and s's exports 2. New trade and investment opportunities 3. Mitigates strategic rivalries

Question 26

RCEP weaknesses (3)

Answer 26

1. Free trade limits agricultural tariff lines - 328 000 agri job losses 2. Larger economies may dominate 3. Labour & environmental standards