MARKET INTEGRATION
Reasons for a being multinational corporations;
- Access to lower production cost -Proximity to target international markets - Avoidance of tariffs
Characteristics of a Multinational Corporations;
-Very high assets and turnover - Network branches - Control -Continued growth - Sophisticated Technology - Right Skills - Forceful marketing and advertising -Good quality of products
A system in which all natural resources and means of production are privately owned. It emphasizes profit maximization and completion as the main drivers of efficiency.
CAPITALISM
This one of the systems born out of Bretton Woods is the ___________________________________.
General Agreement on Tariffs and Trade.
Multinational Corporation referred to as?
Global Corporations
This institutions aimed to help the economic stability of the world. Both of them are basically banks but instead of being started by individuals like regular banks, they started by organizations.
IMF AND WB
The negative consequence of NAFTA.
Include excessive pollution, loss of more than 682,00 manufacturing jobs, exploitation of workers in Mexico, and moving Mexican farmers out of business.
Computer and other technologies are beginning to replace many jobs because of automation or outsourcing jobs offshore.
Information Revolution
World economies have been brought closer together by globalization. The strength of a more powerful economy brings greater effect on other countries. In the same manner, crises on weaker economy have less effect on other countries.
International Financial Institutions
Its goal was to help countries which were in trouble at that time and who could not obtain by any means. And it serve as a lender or a last resort for countries which needed financial assistance.
International Monetary Fund
Both were founded after the World War II mainly because of peace advocacy.
International Monetary Fund ( IMF) and World Bank (WD).
This the third significant criticism to WTO.
International Non-Government Organization (INGOs) are not involved, leading to the staging of regular protests and demonstrations against the WTO.
It has 14 member countries. This organization was formed because member countries wanted to increase the price of oil, which in the past had relatively low price and had failed in keeping up with inflation.
Organization of Petroleum Exporting Countries (OPEC)
Although countries are heavily affected by the gains and crises in the world economy, the _______________ that they consist also contribute to these events.
Organizations
What are the 5 financial institutions insurance?
1. The Bretton Woods System 2. The General Agreement on Tarrifs and Trade( GATT) and the World Trade Organization ( WTO). 3. The International Monetary Fund ( IMF) and The World Bank 4. OECD, OPEC, AND EU 5. North American Free Trade Agreement (NAFTA)
The Industrial Revolution is the second major economic revolution in __________.
1800s
What year is the GATT is established?
1947
What century that labor unions began to form that sought to improve ages and working conditions.
19th century
What century the development of technologies in the half?
20th century
The idea that if one leaves a capitalist economy alone, consumers will regulate things themselves by selecting goods and services that provide the best value.
Adam Smith called as the "invisible hands".
How many GATT member countries have?
Currently having 23 member countries.
The social institution that has one of the biggest impacts on society is the ______________.
Economy
It is made up with 28 member states. Most members in the Eurozone adopted the euro as basic currency.
European Union ( EU)
It focus on trade goods through multinational trade agreements conducted in many "rounds" of negotiation".
GENERAL AGREEMENT ON TARIFFS AND TRADE ( GATT)
How many countries are WTO has?
It has 152 members states. It headquarters is located at Geneva Switzerland.
Whose people composed of economy?
It is social institution that organizes all productions, consumption, and trade of goods in the society.
Positive consequences of NAFTA.
It lowered prices by removing tariffs, opened up new opportunities for small and medium sized business to established a name for itself, quadrupled trade between the three countries , and created five million US jobs.
When was W TO is established?
It was established in 1995 and as of 2005.
According to him, socialism is a stepping stone to communism.
Karl Marx
It is a company that operates in its home country as well as in other countries around the world. It maintains a central office located in one country, which coordinates the management of all other offices such as administrative branches or factories.
MULTINATIONAL CORPORATIONS
The extent to which markets make goods available and keep prices stable depends on whether market are integrated with each other. It is a situation in which separate markets for the same product become one single market.
Market Integration
A trade pact between the United States, Mexico, and Canada which helps in developing ad expanding world trade by broadening international cooperation.
North American Free Agreement ( NAFTA)
Farming helped societies build surpluses, meaning?
Not everyone had to spend their time producing food. Thus, it led to major developments.
It has 35 member states as of 2016. This emanates from the member countries' resources and economic power.
Organization for Economic Cooperation and Development (OCED)
Extracts raw materials from natural environments.
Primary Sector
What are the three sectors of economic systems?
Primary Sector, Secondary Sector, and Tertiary Sector.
This means of production are under collective ownership- property is owned by the government and allocated to all citizens , not only those with the money to afford it.
SOCIALSM
Gains raw materials and transforms then into manufactured goods.
Secondary Sector
The US dollar became the global currency.
THE FIFTH KEY ELEMENTS OF THE BRETTON WOODS SYSTEM.
Eliminating restrictions on the currencies of member states in the international trade.
THE FOURTH KEY ELEMENTS OF THE BRETTON WOODS SYSTEM
The official monetary authority in each country (a central bank) would have to agree to exchanged its own currency for those of other countries at the established exchanged rates, plus or mines a one percent margin.
THE SECOND BRETTON WOOD SYSTEM KEY ELEMENTS
The establishment of an overseer for these exchanged rates thus the international monetary fund was founded.
THE THIRD KEY ELEMNTS OF THE BRETTON WOODS SYSTEM.
Involves services rather than gods.
Tertiary Sector
It was the first big economic changed . When people learned how to domesticate plants ad animals, they realized that it was much more productive than hunter gatherer societies.
The Agricultural Revolution
Its a monetary management established the rules for commercial and financial relations among its members. It was the first example of a fully negotiated monetary order intended to govern monetary relations among independent states.
The Bretton Woods System
When was the Bretton Wood System established?
The Bretton Woods System was established because of the fear of recurrence of lack of cooperation among nations, political instability, and economic turmoil.
With the rise of industry came new economic tools, factories popped up and changed how work functioned. Instead of working at home , people began working as wage laborers and then becoming more specialized in their skills.
The Industrial Revolution
This is the second significant criticism to WTO.
The decision-making process were heavily influenced by larger trading powers, in so-called Green Room, while excluding smaller powers in meetings.
Created - shape the way people live their lives.
The economic system and the economic revolutions.
Is the expression of currency in terms of gold or gold value to established a par value.
The first key elements of the Bretton Woods System.
Reduction of barriers to trade and free flow of money among nations became___________________________________________________________.
The focus to restructure the world economy and ensure global financial stability.
It is an independent multilateral organization that became responsible for trade in services, non-tariff-related barriers to trade, and other broader are of trade liberalization.
World Trade Organization ( WTO)
This is first significant criticism of to WTO.
Trade barriers created by developed countries cannot be countered enough by them.
However, it was out of the ______________( 1986-1993) that an agreement was reached to create the World Trade Organization (WTO)/.
Uruguay Round
Its goals had more long-term approach which revolved around the eradication of poverty and it funded specific goals and it funded specific projects that helped them reach their goals.
World Bank (WB)