Int 13

2. Lecture 12 - Global Economy
ECON 360 International Economics

3. Quiz
1. What is GATT and the WTO?
2. What three products have the
highest protection?

4. Uruguay
Services - GATS
Investments - TRIMs
Intellectual Property - TRIPs

5. Investment Restrictions
IP
Patents, trademarks,
copyrights
Pharma, entertainment,
software

6. As countries develop their
own innovations, more
protection for IP.
IP is not a trade issue
Can be used politically

7. WTO
Developed
Developing

8. 1995
164 members
90% of Trade
Geneva, Switzerland

9. Member-driven
Not Independent
No power to enforce

10. Trade Negotiation
Dispute Settlement

12. GATT - Agreement
Goods
WTO - Institution
Good, Services, Investments,
and Intellectual Property

13. Grand Bargain
Developing Countries
Had to agree on services,
investments, and IP.
Did not get access to
agriculture and clothing

14. Block Imports
Labor Standards
Environmental Standards

15. Standards
Set what ever standard you
want, it just has to apply to
both domestic and foreign
producers.

16. Standards
Use rationale to protect
domestic producers
Disguised protectionism

17. GlobalValue Chains
Intermediate Goods

18. Political Strategy
Exporters who benefit.
vs.
Domestic firms facing
import competition

19. WTO
Dispute Settlement Body
Countries can retaliate if
another country does not
abide rulings

20. July 1944 Bretton Woods, New Hampshire, USA

21. Rebuild
Monetary Stability

22. IBRD
12-15 yr
rate plus
IDA
35-40 yr
interest free

24. Monetary Stability
1870 - WW1
Gold $20.67 per oz.
Gold Standard

25. Peg the currency
Help illiquid governments
Maintain stability
Temptation