Study Guide- Introduction and Part 1

Define free trade

international trade left to its natural course without tarrifs, quotas, or other restrictions.

Leaders of Truman's generation believed that:

international trade was crucial to the health of the US economy and the stability of the west.

What is protectionism?

the theory or practice of shielding a countries domestic industries from foreign competition by taxing imports.

Give two examples of criticisms of the WTO

1. Free trade benefits developed come countries more then others. 2. Failure to reduce tariffs.

List the "four tigers" of East Asia (so called because they are highly successful economies.)

1. Taiwan 2. Hong Kong 3. China 4. Japan

list three consequences of the global economic crisis that began in 2008.

1. the largest financial crisis since the 1930's. 2. Iceland announced that the banking system had collapsed. 3. Unemployment has spiked around the world.

what does NAFTA stand for?

North American Free Trade Agreement

Where does NAFTA take place?

The US, Mexico, and Canada

At a most basic level, people trade because:

There are gains to be had.

What is the purpose of the WTO

To promote fair trade, encourage multilateral negotiations, and help resolve disputes among members across the globe

Define globalization

a force or process that involves the entire world and results in making something worldwide in scope

The rapid spread of the current economic crisis is directly related to the:

closeness of the world economy.