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51 Cards in this Set
- Front
- Back
re-emergence of protectionism
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1980s; increasing use of non-tariff barriers
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uruguay round
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change GATT into WTO; aims were to restrict foreign investments and begin opening trade in banking and insurance services
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types of trading agreements
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free trade area, customs union, common markets
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effects of a custom union
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trade creation; trade diversion
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WTO
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more powerful that GATT; rules include non-discrimination, prohibiton of quotas, fair competition, binding tariffs
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imports
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the purchase of goods and services from abroad that leads toan outflow of currency
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exports
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the sale of goods and services t buyers from other countries leading to an inflow in currency
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eu parliament
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current 732 members; based in france, belgium, and luxembourg; passes laws, monitors budget, monitors eu institutions
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eu council
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ministerial represenations from each member state; passes laws, approved budget, coordination of economic policies, developes foreign policy, coordinated anticrime strategies
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eu commission
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20 commisionsers appinted by each member state every 5 years; proposes legislation, implements policies, law enforcement, international coordination
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european central bank
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implements and monitors eurozone monetary policy; inflation target of less that 2% per year
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european investment bank
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owned by member states; raise fnanc through financial markets, invest in projects to promote aims of eu
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court of auditors
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monitors legality ad efficiency of eu income and expenditure
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court of justice
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one judge from each member state; interprets and applies eu legislation
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cap - common agrucultura policy
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sustainability, food quality, animal welfare, food safety, control, farmers welfare, employment in agriculture
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cfp - common fisheies policy
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conservation of fist stocks, aid to fishing industry, monitor suppy and demand, negotiate wih non-eu members on fishing issus
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euro
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monitor introduction and development
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single market
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free movment of goods, services, labor and capitl between member states; began in 1993; got rid of obstacles of trade; removed barriers
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tax harmonization
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reduce differentialsin tax regimes throughout the single market to aid competition and transparency
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members outside eurozone
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uk denmark and norway, and enlargement countries 2004
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barriers to the single market
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regulatory, technical, legal, bureaucratic, cultural, protectionist
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benefits of single market
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lower prices, greater choice of goods; fair competition, economies of scale, expansion to globalmarkets
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euro
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introduced in 2002; currency for 12 of 25 member states; non-eurozones are uk, sweden, denmark, norway, and new member states; final part of economic and monetary union
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economic and monetary union
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stage 1: remove barrieres
stage 2: european central bank stage 3: intro of euro |
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globalization
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the movement towards the expansion of economi and social ties between countries through the spread of corporate institutions and the capitalist philosophy that leads to the shrinking of the world in economic terms
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globalization involves
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recognition, equality/inequality, outsources, growth, technology, shrinking world, environment, capitalism, trade vs aid
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integration of economies
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the increasing reliance of economies on each other; the growth of global markets in finance, opportunities for markets accros the world
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integration of economies made possible by
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technology, communication networks, internet access, growth of economic cooperation, growth of economic cooperation
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benefits of trade
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increased choice, greater potential for growth, increase inernational economies of scale, greater employment opportunities
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disadvantages of trade
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increase in gap between rich and poor; dominance of global trade by northern hemisphere countries, lack of opportunities for poor; exploitation of workers and growers
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multi-national or transnational corporations
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businesses with a headquarters in one country but with business operations in a number of others
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characteristics of corporates expansion
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expanding revenue, lowering costs, sourceing raw materials, controlling key supplies, control of processing, global economies of scale
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corporate domination issues
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damage to environment, exploitation of labor, monopoly power, economic degradation, non-renewable resources, damage to cultures
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external shocks to the global economy
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natural disasters, energy costs, famine, share prices, uncertainty, economic policies, war
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evergy costs
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oil prices, gas prices, non-renewable resouces
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famine
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economic degradation, harvests, international markets
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share prices
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global economic slowdown, regional economic problems
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shareprices
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reflect the expectation of future financial performance, a belief that prices may fall in any area of the world is sufficient to trigger global market changes
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economic policies
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interest rates, aid policies, domestic policies; interest rates changes anticipated across the world
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domestic policies
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trade protectionism (us tariff on steel); regulation (impacts of trade patterns); trade blocs (nafta, eu)
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uncertainty
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collapse of major industry, fraud, corruption, political change, natural resources, rumors, payment default
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war
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middle east, africa; increases uncertainty and leads to potential economic dislocation
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problems facing multinationals
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language barriers, marketing, relations with host governements etc
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multinational companies advantages
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employment, balance of payments, technology transfer, tax revenues
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multinational companies disadvantages
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uncertainty, power and control of host country, transfer pricing, environment
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protectionism
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tariffs, quotas, non-tariff barriers; means by which trade between countries is resticted in some way
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tariff
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tax on a good coming into a country
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quota
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physical restriction on the number of goods coming into a country
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non-tariff barriers
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rules, regulations, legislation, exacting standards, volutary export restrictions
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trade liberalisation
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aims to free up world trade and break down the barrierse to international trade; GATT/WTO;
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benefits of trade liberalization
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promotes international spacialization and increases world output; promotes efficient use and allocation of world resources; allows developing countries to access world markets; facilitaes the working of the international market system
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