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Geo ch.10 (2)


World Trade Organization (WTO) established in 1995 by countries representing 97% of world trade, works to reduce barriers to international trade through reducing restrictions and enforcement
The Four Dragons South Korea, Singapore, Taiwan, and Hong Kong, among the first to adopt the international trade path
2 sources of finance direct investment by transnational corporations and loans from banks and international organization
International Monetary Fund (IMF)  Loans to countries experiencing balance-of-payments problems that hinder international trade  Helps rebuild international reserves  Stabilize currency rates  Pay for imports without trade restrictions  Does not lend for specific projects
World Bank Includes the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)
International Bank for Reconstruction and Development (IBRD) provides loans to: • Reform public administration and legal institutions • Develop and strengthen financial institutions • Implement transportation and social service projects • Lends from sales of bonds
International Development Association (IDA) provides support to poor countries who do not qualify for IBRD loans: • Lends from government contributions
microfinance the provision of small loans and other financial services to individuals and small businesses in developing countries that are unable to obtain loans from commercial banks
Grameen Bank established in Bangladesh in 1977, specializes in making loans to women
Muhammad Yunus founder of Grameen Bank, awarded Nobel Peace Prize in 2006
stimulus strategy Proponents argue that governments should put people to work on infrastructure projects during a downturn to revive the economy
austerity strategy Proponents argue that governments should reduce taxes during a downturn to revive the economy
structural adjustment program contains economic “reforms” or “adjustments,” such as economic goals, strategies for achieving the objectives, and external financing requirements
sustainable development goals adopted by the UN in 2015, 17 goals for development by 2030
fair trade international trade that provides greater equity to workers and small businesses in developing countries
Ten Thousand Villages the largest fair trade organization in North America, specializing in handicrafts
Created by: imr36093
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