Unit 3 Flashcards
(41 cards)
Bretton Woods Agreement
An agreement forged after the Second World War in Bretton Woods, New Hampshire, by 44 countries to establish a system of rules, institutions and procedures for the post war global economy
International Monetary System
A global network of institutions established by the Bretton Woods Agreement to promote international trade and the regulation of currency among Western Countries
Fixed Exchanged Rate
The value of a country’s currency as set by its government
Gold Standard
A provision of the Bretton Woods Agreement that all printed money, such as paper dollar, would be convertible to gold and could be cashed in at any time for that gold
Inflation
A situation in which the amount of currency in circulation increases yet each unit of currency buys less
Floating Exchange Rate
Currency rates that are not fixed by the government but instead find their own value in the foreign exchange market
World Bank
An agency of the United Nations that in practice is independent and controlled by its 184 member countries, which provides loans to less developed countries that are in financial difficulty
(long term financial assistance)
International Monetary Fund
International agency that work with the World Bank to bring stability to international monetary affairs and to help expand world trade
(short-term financial assistance)
Quotas
Proportional shares, such as those paid by member countries of the International Monetary Fund
Cold War
A global economic and political competition, from 1946-1989, that divided the Communist countries, led by the Soviet Union, against the Western Capitalist democracies, led by the United States
the cold war was another catalyst for economic globalization
Centrally planned Economic system
A system under which government planners decide what goods to produce, and how many
Free Market Economy
A system in which government does not intervene in the production and control of goods and services
International Monetary Markets
Markets in which funds loaned for a short time to businesses or governments are bought and sold, for example, short term bond and certificates or deposit
Mutual Fund
A company that combines it’s clients’ money and invests it in a collection of stocks, bonds, and other securities
Recession
A period of reduced economic activity lasting longer than two business quarters
Totalitarian
A political system under which individuals are totally subordinate to the decisions of the state
Compeletly controlled by government
Free Trade Agreement (FTA)
1989 economic treaty between Canada and the United States that sought to promote trade by reducing tariffs and other barriers between the two countries
NAFTA
1994 treaty among Canada, United States and Mexico to improve trade by removing tariffs and other economic barriers
G8 (G7)
An informal group of the eight major industrial democracies that meets at annual summits to discuss economic and foreign policies
Russia was kicked out so it became G7. Member; Canada, France, Germany, Italy, Japan, United kingdom, United States
Human Capital
The knowledge, skills, and talents that workers have
Capital Intensive Production
Manufacturing in which most work is done by machinery
Labour Intensive Production
Manufacturing in which most work is done by hand
European Union (EU)
The world’s largest and most powerful common market, which works to develop common foreign and security policies and to address other issues as citizens rights, job creation, regional development, and environmental protection
Common Market
An agreement between or among countries that includes the free trade of goods and services and free movement of capital and labour within trading bloc
