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Flashcards in Lesson 3 Deck (14)
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1
Q

What is IMF?

A

International Monetary Fund

2
Q

What does IMF do?

A

Lends money for development purposes ( similar to world bank).

3
Q

What is IMF’s primary role?

A

Maintain financial stability
tries to privatise government assets in return for loans to increase private sector and increase wealth
Try to stabilise currencies to maintain economic growth

4
Q

What is a drawback of IMF?

A

Many believe its forced on poor countries to sell off assets to wealthy TNCs

5
Q

What do the world bank do?

A

Finance economic development

6
Q

How does the world back fund this?

A

Uses bank deposits placed by the worlds wealthiest countries to provide loans for development in countries that agree to certain conditions for repayment & economic growth

7
Q

What does the world bank mainly give loans for?

A

Natural disasters and humanitarian emergencies

8
Q

What is WTO?

A

World trade organisation

9
Q

What does WTO believe in?

A

Free trade

10
Q

What have WTO done?

A

Removed trade liberalisation & encourage trade free from tariffs and restrictions

11
Q

What is a trade bloc?

A

An intergovernmental agreement where barriers to trade are reduced or eliminated

12
Q

Positives of trade blocs? (6)

A

Improved technology
Markets grow - 20 new nations gained EU more access to customers eg. Tesco
Jobs created - businesses and people move more freely
Free trade within bloc - tariffs are removed
Traveling is easier
Increased investment from other countries - improvements

13
Q

Negatives of trade blocs? (5)

A

countries lose resources to more efficient members
International crime increases - easier for criminals to move across boarders
TNCs may relocate where it is cheaper
They discourage trade with non members
Increased competition

14
Q

What are 2 examples of Trade blocs?

A

EU and OPEC