Inttrade
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The document discusses the history and role of international trade organizations. It explains that after the Great Depression, countries established bodies like the IMF and World Bank to encourage free trade between nations and prevent economic chaos. These organizations aim to reduce trade barriers and provide loans to countries, but they also face criticism for imposing conditions that potentially exacerbate poverty in developing economies. The World Trade Organization was later formed to oversee global trade rules and agreements.
Inttrade
- 1. http://www.bized.co.uk Copyright 2007 Biz/ed International Trade BTEC Business
- 2. http://www.bized.co.uk Copyright 2007 Biz/ed Trade Barriers the EUs internal market is about removing barriers to free movement of goods, services, people and capital the flow of goods and services in the world economy is also important organisations have been set up to encourage the removal of barriers to free global trade
- 3. http://www.bized.co.uk Copyright 2007 Biz/ed Why the stress on free world trade? The world economy went into a deep depression in the 1930s, as many countries closed their barriers to trade with other states. This led to: Mass unemployment Social upheaval Rise of fascism and the Second World War
- 4. http://www.bized.co.uk Copyright 2007 Biz/ed How to prevent chaos happening again? Global powers set up bodies to support international trade International Monetary Fund World Bank All countries encouraged to join these organisations, or face exclusion from benefits of free world trade
- 5. http://www.bized.co.uk Copyright 2007 Biz/ed What do the IMF and World Bank do? IMF: Lends to countries with balance of payments problems Pushes for economic reforms Reports on policies in member states
- 6. http://www.bized.co.uk Copyright 2007 Biz/ed What do the IMF and World Bank do? World Bank: Aims to help development by advising and lending with many conditions Countries encouraged to lift import and export barriers, cut subsidies and remove price controls
- 7. http://www.bized.co.uk Copyright 2007 Biz/ed Criticisms of IMF IMF only lends money if countries agree to: Sell their resources cheaply Cut public spending Critics say this serves to increase the problems of poverty in poor member countries
- 8. http://www.bized.co.uk Copyright 2007 Biz/ed Criticisms of World Bank Loans depend on countries agreeing a Structural Adjustment Programme Leads to rapid increase in price of goods in country Increases poverty Lower investment and cut social spending Little evidence that these policies work
- 9. http://www.bized.co.uk Copyright 2007 Biz/ed What about the World Trade Organisation (WTO)? The WTO deals with the rules of trade between countries It developed from the General Agreement on Tariffs and Trade (GATT) WTO agreements set the ground rules for international commerce
- 10. http://www.bized.co.uk Copyright 2007 Biz/ed Why so much outrage over globalisation? Other than the criticisms raised earlier, opponents of globalisation point to: Falling share of world trade taken by developing countries Subsidies and tariffs set by rich developed economies: USA steel tariffs, EU agricultural subsidies are two of the culprits