ECON 3980 Final Exam
Enabling clause; what does it mean? (there is an enabling clause of WTO; so know how it works)
"enabling clause," which deals with special and differential treatment, allows for RTAs among developing countries in goods trade, based on the "mutual reduction or elimination of tariffs." special and differential treatment for developing countries, mutual reduction of tariffs
Regional Institutions Section
15 Questions
The World Trade Organization Section
21 Questions
UN Institutions Section
25 Questions
BRICS; when was the BRICS New Development Bank established
7 July 2015; The New Development Bank (NDB), formally referred to as the BRICS Development Bank is a multilateral development bank operated by the five BRICS states.
MTO; what is medium term objective in context of stability programs and convergence programs
A Medium-Term Objective (MTO) ,is a budgetary target set for each Member State which is defined in structural terms. Member States must also set out yearly targets on the way towards the MTO and forecast the expected path of their debt-to-GDP ratios.
Under single European union market, what can flow free? (goods, or only capital, or capital and goods, or labor and goods) <-- which one
Goods, Services, People, Capital: single markets permits the free flow of goods, service, capital, and people within the EU. Although there is a single tariff on goods entering an EU country, once in the market, no additional tariffs or taxes can be levied on the goods.
Excessive deficit procedure, what can trigger this for a member state of the EU? (what is the percentage)
If they run excessive budget deficits of more than 3% of GDP or fail to reduce their excessive debts (above 60% of GDP)
Main view in last decades towards gov't involvement in industrial sector, should gov't be involved, should it not, etc. all in article
In recent decades, main view was that gov'ts should limit themselves to removing obstacles to industrial development and correcting market failures. BUT, structural changes in global economy requires strategic choices and markets can't save environment or handle investments alone. Gov'ts can play a more pro active role through deliberate industrial policies
Abcd options of different institutions only 1 answer is correct in terms of which one is informal or formal (WTO is formal)
Informal: World Economic Forum, International Clubs of Creditors, G7, G20
What is the purpose of the Stability and Growth Pact in the EU? (why did they sign this pact)
It aims to prevent the emergence or exacerbation of fiscal difficulties. Member states sharing the Euro currency do this in documents called "Stability Programs" while member states that have not adopted the euro submit "Convergence Programs"
purpose of global competitiveness report by WEF
provides a comprehensive assessment of the competitiveness landscape of economies around the world • The report assesses the factors that drive productivity and prosperity: market size, infrastructure, education
Dispute Settlement Understanding (what does it provide to WTO members?)
provides an enforceable means for WTO members to resolve disputes arising under the binding provisions.
What is a reason or purpose of WTO annual trade monitoring report
provides regular and up-to-date information on global trends in trade measures and trade policy making. It is the only cross-cutting, substantive and systemic-wide transparency function in the WTO which allows the membership to conduct regular and non-legal peer reviews every six months.
How DSU works in terms of WTO members violating its obligations
settle complaints about alleged violations under DSU rules and procedures;
Purpose of the panel under DSU (Dispute Settlement Understanding)
• At its conclusion, the panel recommends a decision to the DSB that it will adopt unless all parties agree to block the recommendation
How manufacturing sector contributes to prosperity of nation (UNIDO)
(Strategic feasibility; analysis of current tech capabilities) It provides the material basis for wealth: tools, building materials, clothing, medication, educational materials, etc.; It provides the equipment, chemicals, etc., that enable the further development of the primary sector; It generates value added by the transformation of raw materials into finished products, thus increasing earnings in domestic and export markets; It stimulates other economic activities through forward and backward linkages; It boosts incomes by its demand for new and higher skills; It stimulates the development of technological, managerial and administrative know-how, boosting productivity growth and innovation throughout the economy.
Additional ways WTO is supporting developing nations
- Aid for Trade, Enhanced Integrated Framework (EIF), Standards and Trade Development Facility (STDF)
What is required for a functioning market economy? (EU) [there are specific requirements]
- high quality of economic governance - macroeconomic stability (including adequate price stability as well as a sustainable public finances and external accounts) - proper functioning of the goods and services market (including business environment, state influence on product markets, and privatization and restructuring) - proper functioning of the financial market (including financial stability and access to finance) - proper functioning of the labor market
Under the excessive deficit procedure, what can be withheld from member states as a form of sanction?
Regional subsidies from the EU's cohesion fund can be withheld
What are the financial institutions that belong to BRICS?
1. New Development Bank 2. Contingent Reserve Arrangement (CRA): framework for providing protection against global liquidity pressures. This includes currency issues where members' national currencies are being adversely affected by global financial pressures. 3. SWIFT: Society for WorldWide Interbank Financial Telecommunication: payment system that provides a network that enables financial insts. world wide to send and receive info about financial transactions in a secure way
GPA (government procurement agreement)
GPA provides market access for various nondefense government projects to contractors of its signatories. Each member specifies government entities and goods and services (with thresholds and limitations) that are open to procurement bids by foreign firms of the other GPA members.
In addition to sustainable development, what else is on their agenda of UNCTAD economic and trade agenda?
Analyzing the impact of the lopsided influence of financial markets, high levels of indebtedness, trade imbalances, rising unemployment, uneven economic growth, upward trends in food prices and the volatility of exchange rates and commodity prices, all of which are particularly damaging for developing countries.
Term "Behind the Border"
Behind the border barriers refers to a variety of non-tariff barriers (NTBs) that operate inside countries rather than at the border, but that nonetheless can restrict or discriminate trade.
Plurilateral Agreement; how the measures of Plurilateral agreement bring benefits to other WTO members, if any
Benefits of this agreement are to be shared among all WTO members; negotiating group would include those members forming a critical mass of world trade in product or sector covered by the negotiation in order to avoid problem of freedom riders plurilateral agreements are negotiated by a subset of WTO members and often focus on a specific sector. A handful of such agreements supplement the main WTO agreements.
Where the first UNCTAD conference was held, which year, and which country OR CITY
Geneva in 1964
What is a main advantage of businesses that operate within the Eurozone in terms of currency exchange
Businesses are not exposed to risk of fluctuating currency exchange rates: Businesses conducting business w/ countries in the EU find it easier and cheaper to transact business with the other EU countries. Also, the elimination of the need to convert currencies within euro markets reduces transaction costs. .
How does the European Commission monitor economic development within the EU?
COPENHAGEN CRITERIA; Draft budgetary plans from member states to the commission, the commission can recommend members to submit Corrective Action Plans to address their situation; To assess whether countries meet the economic criteria the European Commission monitors the following sub-criteria.
Primary consideration for UNIDO in implementing SIP
Capacity/capability development, advice - Procurement of resources - Coordination of interventions
If a disputing party declines with findings of the DSB
DSB may authorize retaliation in the amount of the determined cost of the offending party's measure to the aggrieved party's economy.
How WTO can ensure accountability among its members
DSM, Special and Differential Treatment, etc.
What global challenges does UNCTAD analyze, particularly focusing on their impact on developing countries
Developing countries role in international trade, debt crises, structural adjustment programs impacted by IMF & WB
According to text, what is considered as complex task during SIP implementation stage
Different actors and project locations: the implementation of a strategy is a complex task because of the different actors and project locations and changes in conditions that may occur over time. The key elements in governing the implementation are specialized management teams and multi-stakeholder consultations
What does UNIDO assess to make sure its attractive to go to that country and build particular industry
Framework for assessing the relative attractiveness and strategic feasibility of manufacturing activities
The 4 main types of regional economic integration and what they each mean
Free Trade Area: member countries (of whichever org.) remove all barriers to trade between themselves but free to determine trade policies w/ non-member countries. Ex (North American Free Trade Agreement; NAFTA) Customs Union: non-member countries agree to treat trade with non-member countries in a similar manner as the free trade area; they are groups of countries that apply one common system of procedures, rules, and tariffs for all or almost all their imports, exports and transiting goods. Common Market: don't get confused with customs union, this type is about labor and capital and removing the restrictions on the movement of these two and there is also a common trade policy for trade with nonmember nations (underlined portion is similar to customs unions) Economic Union: when countries enter an economic agreement to remove barriers to trade and adopt common economic policies (example: European Union)
Where was the group and when was it established
G77;
Cumulative GDP of BRICS and cumulative GDP of G7
G7: $46.3 trillion BRICS:
What is the content of stability programs and convergence of programs? (Euro submitted by EU member states)
MTO: Medium Term Objective (budgetary target set for each member states, expected path of their debt to GDP ratios), underlying economic assumptions about growth, etc., a description of police measures, information covering several years, explain why targets are not being met
How manufacturing sector can stimulate economic activities in the country (UNIDO)
Multi-stakeholder involvement
Key principles of WTO
Nondiscrimination-a country should not discriminate between its trading partners(giving them equally "most-favored-nation" or MFN status); and it should not discriminate between its own and foreign products, services or nationals (giving them "national treatment") • Reciprocity -trade negotiations focus on balancing concessions on tariffs. • Enforceable commitments -when countries agree to open their markets for goods or services, they "bind" their commitments. • Transparency -the degree to which trade policies and practices, and the process by which they are established, are open and predictable. • Safety valves-these measuresallow governments a certain degree of flexibility within their trade commitments and can be used to address circumstances that could not have been foreseen when a trade commitment was made.
Principle of selection for panelist for DSB; how does WTO choose panelist
Panels are composed of three (or five in complex cases) panelists that are NOT citizens of the members, but well qualified non governmental OR governmental individuals MAINTAINED by the Secretariat
Paris Club of Creditors; what is it and how does it work
Paris Club is an informal group of official creditors that was established in 1956 to provide debt relief and restructuring to developing countries facing debt difficulties. The Paris Club is made up of 22 member countries, including the United States, France, Germany, Japan, and the United Kingdom. The group works together to coordinate debt restructuring efforts and to negotiate debt repayment plans with debtor countries
Plurilateral vs Multilateral Agreement in WTO
Plurilateral: Some countries make special agreements on specific issues. Multilateral: All countries agree on common rules for everyone.
What role do stakeholders play in UNIDO SIP approach?
Puts the stakeholders at centre stage in the industrial development Process; in facilitator stage stakeholders are present
How does the European Union see the risk of noncompliance with stability and convergence programs (that countries will not comply)?
Sanctions, Excessive Deficit Procedure: Member States which run excessive budget deficits of more than 3% of GDP or which fail to reduce their excessive debts above 60% of GDP, follow rules known as EDP Commission assesses Stability Programs and Convergence Programs both before and after implementation. This allows the Commission to identify and discuss any risks of non-compliance before they occur, and to identify any actual instances of non- compliance that could ultimately warrant sanctions
Primary focus of UNIDO strategic approach to industry development
Strategic Industrial Policy (SIP) 1. economic social and environmental sustainability 2. stakeholders 3. specific needs of a country is tailored to 4 stages: diagnosis, design, implementation, and evaluation
Strategic feasibility (UNIDO) when they are assessing industries
Strategic feasibility is derived from an analysis of current technological capabilities and other essential policy-relevant factors (education, incentives, institutions, etc.) as well as relevant country characteristics such as: country size, factor endowments and population density. This assessment makes it possible to identify and select industries that have an immediate or future strategic feasibility combined with a high or low attractiveness. Measures can then be taken immediately to stimulate the highly attractive industries that are feasible at present, and long-term diversification measures can be developed for stimulating industries with an equally high attractiveness that will be feasible in the future.
TFA (Trade Facilitation Agreement) ; Why did the WTO design this agreement
TFA aims to address multiple trade barriers confronted by exporters and importers and reduce trade costs by streamlining, modernizing, and speeding up the customs processes for cross-border trade, as well as making it more transparent.
About TRIPS agreement *Key aspect of this agreement in context of IPR
TRIPS sets out rules and obligations related to patents, trademarks, copyrights, and trade secrets, creating a framework for the enforcement and protection of these rights on a global scale. This agreement is pivotal in promoting innovation, providing a consistent system for IPR protection, and facilitating international trade by ensuring a level playing field for the treatment of intellectual property among World Trade Organization (WTO) member countries.
Within system of WTO, what is called the Crown Jewel of this organization
The Dispute Settlement
Short answer: Power points for UN organizations; do 5 orgs pursue the same goal if yes why if not why
The Economic Commission for Africa (ECA) focuses on promoting sustainable development in African nations, while the Economic Commission for Europe (ECE) addresses challenges and opportunities in Europe. The Economic Commission for Latin America and the Caribbean (ECLAC) targets economic and social issues in Latin American and Caribbean countries. The Economic and Social Commission for Asia and the Pacific (ESCAP) concentrates on the diverse needs of countries in Asia and the Pacific, and the Economic and Social Commission for Western Asia (ESCWA) tackles regional challenges in Western Asia. While all commissions share the broader aim of fostering regional development, they tailor their efforts to address the unique circumstances and priorities of their respective regions, contributing to the overall objectives of the United Nations.
Primary focus of UNIDO as facilitator of SIP projects
The Organization helps to initiate and stimulate the industrial development dialogue among all key public and private sector stakeholders in a country. It does so impartially.
About TRIPS agreement *relationship between IPR and development of developing countries (Are there any exclusions for them in terms of IPR?)
The TRIPS agreement within the World Trade Organization establishes minimum standards for intellectual property rights (IPR) globally. Concerns have been raised about its potential impact on the development of developing countries, as strict IPR protection may limit access to essential technologies and medicines. TRIPS includes flexibilities for developing nations, such as transitional periods, public health safeguards, and the allowance of compulsory licenses during public health crises. These measures aim to balance IPR protection with the development needs of member countries, recognizing the challenges faced by developing nations. The relationship between IPR and development remains a topic of ongoing debate and negotiation within the international trade community.
Short answer (last ppt.) list 3 reasons for US why they have a formal and informal influence
The US remains an economic power, which is why they have influence in both formal and informal institutions. Take for example the WB and IMF; the contributions of the US to these organizations gives it substantial influence to shape global economic policies. The US holds over a 1/3rd of the voting power in each institution, so they have influence in these for power reasons. No financial withdrawal or loan from the IMF could be approved unless the US explicitly agreed to it, they have the ability to shape financial actions. The US role in informal institutions such as the G7 & G20 and US participation in the Financial Stability Board is because it allows US global economic governance.
What are the economic criteria for countries to join the EU (know exactly, Copenhagen criteria, etc.)
The economic criteria to be eligible to join the EU are: • the existence of a functioning market economy: macroeconomic stability, proper functioning of the labor market, high quality of economic governance • the capacity to cope with competitive pressure and market forces within the Union: role of SMEs, • To assess whether countries meet the economic criteria the European Commission monitors the following sub-criteria; fiscal surveillance procedure
Key characteristics of multi stakeholder approach to policy making in UNIDO
The multi-stakeholder approach requires learning - the implementation process must become part of the 'group culture' of stakeholders. Prioritization, stakeholders must consider questions like what is feasible short, med. and long term economic factors, social factors, and environmental factors
Short answer; read last ppt. to know what are the factors that contribute into relatively diminishing role of US dollar (any short answer, 4-6 sentences)
There are a few factors influencing the diminishing role of the US dollar as a global reserve currency including: fear of US debt and other currencies. Foreign investors used to hold almost 50% of US Treasuries but now this has decreased to about 30%. This means countries are having less faith that the U.S. can pay back their debts. Also, following the creation of the Euro in 1999, countries can express preference for using these currencies rather than the U.S. dollar or the Chinese yuan. The continued rapid growth in China is also a challenge for US dollar dominance. China is selling more than their buying while for the US, it is the opposite.
UNIDO: what is emphasized in tailoring industrial policies according to article; in other words do they use universal, specific needs of diff. countries? Do they ignore environemental dimensions, etc.
UNIDO offers wide range of services and expertise; specific tasks of Development Policy, Statistics and Research (DPR), creation of local capacities for policy design and implementation, information and knowledge and governance mechanisms
What are the 3 basic roles that UNIDO plays in implementing SIP projects?
UNIDO plays three roles: Facilitator, Policy Adviser, and Capacity Developer
Intersectoral change in terms of economic development (UNIDO), changing the structure of the economy and moving from 1 branch of industry to another
UNIDO's Strategic Industrial Policy Approach (SIP) helps governments to identify and initiate interventions that will guide a country's economy towards sustainable growth by encouraging structural change. Facilitator, Policy, and Capacity
5 regional economic commissions; only 1 answer is correct under the umbrella of the UN
United Nations Economic Commissions are regional commissions established by the United Nations to promote economic and social development in various regions of the world. There are five regional commissions: 1. the Economic Commission for Africa (ECA), 2. the Economic Commission for Europe (ECE), 3. the Economic Commission for Latin America and the Caribbean (ECLAC) 4. the Economic and Social Commission for Asia and the Pacific (ESCAP), 5. the Economic and Social Commission for Western Asia (ESCWA).
GATS (General Agreement on Trade and Services) ; why it was agreed upon
WTO members have also made individual commitments under the GATS stating which of their service sectors they are willing to open to foreign competition, and how open those markets are.
List of information included done by UNCTAD; they issue reports every year
World Investment Reports focus on trends in foreign direct investment world wide: Every issue of the Report has: • Analysis of the trends in FDI during the previous year, with especial emphasis on the development implications. • Ranking of the largest transnational corporations in the world. • In-depth analysis of a selected topic related to FDI. • Policy analysis and recommendations. • Statistical annex with data on FDI flows and stocks at the country level.
DSB (Dispute Settlement Body) ; what is the role of this in WTO
a plenary committee of the WTO, oversees the panels and adopts the recommendations of a DS or AB Panel
What is a focus of the forum on taxation initiated by WEF): are all about World Economic Forum
address the challenges of global tax systems. The forum brings together leaders from business, government, and civil society to discuss and propose solutions to tax issues, such as tax avoidance and evasion, base erosion and profit shifting, and the taxation of the digital economy.
What do Common Markets mean in terms of integration?
creation of economically integrated markets between member countries.
GATS; 4 modes of delivery for services; classified under GATS system
cross-border trade consumption abroad commercial presence, and presence of natural persons.
Definition of informal economic orgs
groups of countries or organizations that collaborate and coordinate their economic policies outside of formal, legally-binding agreements or institutions.
Powerpoint lecture 7; what was the initial motivation by the UN to create UNCTAD
growing concerns about the place of developing countries; as an intergovernmental forum for North-South dialogue and negotiations on issues of interest to developing countries, including debates on the "New International Economic Order".
UNIDO Text: overarching goal of UNIDO strategic industrial policy approach
helps governments to identify and initiate interventions that will guide a country's economy towards sustainable growth by encouraging structural change.
Intersectoral structural changes (UNIDO)
intersectoral structure of production, towards areas that offer better prospects for economic development. UNIDO's Strategic Industrial Policy Approach (SIP) helps governments to identify and initiate interventions
Primary task during implementation stage of SIP
involve creating the institutions and coordination mechanisms for the implementation. Monitoring mechanisms must also be put in place to check the implementation process and the effects of the strategy, so that the governance system can adjust parts of or projects under the strategy when these do not achieve their purpose or in response to changing external conditions.
Purpose of doing strategic feasibility on analysis of industries by UNIDO
makes it possible to identify and select industries that have an immediate or future strategic feasibility combined with a high or low attractiveness.
