International Trade BTEC Business
Trade Barriers <ul><li>the EU’s internal market is about removing barriers to free movement  of goods, services, people an...
Why the stress on free world trade? <ul><li>The world economy went into a deep depression in the 1930s, as many countries ...
How to prevent chaos happening again? <ul><li>Global powers set up bodies  to support international trade </li></ul><ul><l...
What do the IMF and World Bank do? <ul><li>IMF: </li></ul><ul><li>Lends to countries with balance  of payments problems </...
What do the IMF and World Bank do? <ul><li>World Bank: </li></ul><ul><li>Aims to help development by advising and lending ...
Criticisms of IMF <ul><li>IMF only lends money if countries agree to: </li></ul><ul><li>Sell their resources cheaply </li>...
Criticisms of World Bank <ul><li>Loans depend on countries agreeing a ‘Structural Adjustment Programme’ </li></ul><ul><li>...
What about the World Trade Organisation (WTO)? <ul><li>The WTO deals with the rules of trade between countries </li></ul><...
Why so much outrage over globalisation? <ul><li>Other than the criticisms raised earlier, opponents of globalisation point...
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International Trade

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International Trade

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International Trade

  1. 1. International Trade BTEC Business
  2. 2. Trade Barriers <ul><li>the EU’s internal market is about removing barriers to free movement of goods, services, people and capital </li></ul><ul><li>the flow of goods and services in the world economy is also important </li></ul><ul><li>organisations have been set up to encourage the removal of barriers to free global trade </li></ul>
  3. 3. Why the stress on free world trade? <ul><li>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: </li></ul><ul><li>Mass unemployment </li></ul><ul><li>Social upheaval </li></ul><ul><li>Rise of fascism and the Second World War </li></ul>
  4. 4. How to prevent chaos happening again? <ul><li>Global powers set up bodies to support international trade </li></ul><ul><li>International Monetary Fund </li></ul><ul><li>World Bank </li></ul><ul><li>All countries encouraged to join these organisations, or face exclusion from benefits of free world trade </li></ul>
  5. 5. What do the IMF and World Bank do? <ul><li>IMF: </li></ul><ul><li>Lends to countries with balance of payments problems </li></ul><ul><li>Pushes for economic reforms </li></ul><ul><li>Reports on policies in member states </li></ul>
  6. 6. What do the IMF and World Bank do? <ul><li>World Bank: </li></ul><ul><li>Aims to help development by advising and lending – with many conditions </li></ul><ul><li>Countries encouraged to lift import and export barriers, cut subsidies and remove price controls </li></ul>
  7. 7. Criticisms of IMF <ul><li>IMF only lends money if countries agree to: </li></ul><ul><li>Sell their resources cheaply </li></ul><ul><li>Cut public spending </li></ul><ul><li>Critics say this serves to increase the problems of poverty in poor member countries </li></ul>
  8. 8. Criticisms of World Bank <ul><li>Loans depend on countries agreeing a ‘Structural Adjustment Programme’ </li></ul><ul><li>Leads to rapid increase in price of goods in country </li></ul><ul><li>Increases poverty </li></ul><ul><li>Lower investment and cut social spending </li></ul><ul><li>Little evidence that these policies work </li></ul>
  9. 9. What about the World Trade Organisation (WTO)? <ul><li>The WTO deals with the rules of trade between countries </li></ul><ul><li>It developed from the General Agreement on Tariffs and Trade (GATT) </li></ul><ul><li>WTO agreements set the ground rules for international commerce </li></ul>
  10. 10. Why so much outrage over globalisation? <ul><li>Other than the criticisms raised earlier, opponents of globalisation point to: </li></ul><ul><li>Falling share of world trade taken by developing countries </li></ul><ul><li>Subsidies and tariffs set by rich developed economies: USA steel tariffs, EU agricultural subsidies are two of the culprits </li></ul>
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