Global Economics Ch 1 &2

Front 1

Elements of International Economic integration

Back 1

- The growth of World Trade
- Capital and Labor Mobility
- Three Features of Contemporary Relations
- Trade and Economic Growth

Front 2

International Economic Institutions since WWII

Back 2

The IMF, the World Bank and the WTO

Front 3

The Role of International Economic Institutions

Back 3

- The Definition of Public Goods
- Maintaining Order and reducing Uncertainty
-Case Study: Breton Woods

Front 4

Index of openness

Back 4

The index of openness is the ration of trade of GDP

Index of Openness= (Exports + Imports)/GDP

Openness does NOT reveal a country's trade policies or define its barriers to trade

Front 5

Capital and Labor Mobility

Back 5

As national economies become more interdependent, labor and capital should move more easily across international boundaries.

Front 6

Labor Mobility

Back 6

Labor mobility is less internationally than it was in 1900.

Front 7

Two important points regarding int' capital flows

Back 7

1- Savings and investment are highly correlated

2- Technology improvements increase financial capital flows.

Front 8

Institutions

Back 8

A set of rules governing behavior, whether written or not

Front 9

Formal Institutions

Back 9

Written sets of rules that explicitly state what is and is not allowed

Front 10

Informal institutions

Back 10

Customs or traditions that define appropriate behavior, but without legal enforcement

Front 11

Commodity-or industry- specific organizations: These range from Trade Associations to international-standards-setting bodies to powerful cartels LIST EXAMPLES

Back 11

OPEC
ITU Int' Telecommunications Union
Int' Sugar organization
Int' Lead and Zinc Study Group

Front 12

Commission and Agencies for managing shared resources

Back 12

IBWC Int' Boundary and Water Commission
Lake Chad Basin Commission
Mekong River Commission

Front 13

Development Funds and Banks

Back 13

Inter-American Development Bank IDB
North American Development Bank NADBank
Asian Development Bank
Islamic Development Bank

Front 14

Int' Trade Agreements involving a few nations (regional trade alliances or trade blocs

Back 14

NAFTA
US-Israel Free Trade Agreement
Mercado Comun del Sur MERCOSUR

Front 15

Global ORGANIZATIONS FOR TRADE, DEVELOPMENT, AND MACROECONOMIC STABILITY

Back 15

IMF
WORLD BANK
WTO

Front 16

IMF Assistance- A financial crisis occurs when a country runs out of

Back 16

Foreign Exchange reserves-

Front 17

INF assistance- Foreign Exchange Reserves

Back 17

are a major currency that can be used to pay for imports and international borrowings

Front 18

IMF conditionality

Back 18

Requirement (or Change) for the borrowing member to carry out economic reforms in exchange for a loan

Front 19

Institutions preventing Free Riders 2 important functions

Back 19

- Maintaining order in international economic relations
-Reduce uncertainty