market intergration.pptx
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The document discusses the economy as one of the most impactful social institutions. It describes the three sectors of economy - primary, secondary, and tertiary. It then outlines several key international financial institutions and economic agreements that have shaped the global economy, including the IMF, World Bank, WTO, EU, NAFTA, OECD, and OPEC. It concludes with a brief overview of the agricultural revolution, industrial revolution, capitalism and socialism.
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This document provides an overview of several international economic organizations including the World Bank, International Monetary Fund (IMF), World Trade Organization (WTO), and others. It describes the origins, objectives, and functions of each organization, including their roles in international development, trade, investment, and monetary cooperation. The World Bank focuses on development projects, IDA provides concessional loans to poorer nations, and IFC supports private sector investment. IMF promotes global monetary cooperation and stable exchange rates. WTO liberalizes trade and resolves disputes between member states.
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- 3. “The social institution with one of the biggest impacts on society is the economy.”
- 4. “The social institution with one of the biggest impacts on society is the economy.”
- 5. “The social institution with one of the biggest impacts on society is the economy.” • Family • Religion • Education • Economy • Government
- 6. Economic systems vary from one society to another. Three sectors of economy • PRIMARY SECTOR extracts raw materials from natural environments
- 7. Three sectors of economy • SECONDARY SECTOR gains the raw materials and transforms them into manufactured goods
- 8. Economic systems vary from one society to another. Three sectors of economy • TERTIARY SECTOR involves services rather than goods
- 9. International Financial Institutions "When the American economy sneezes, the rest of the world catches a cold.”
- 10. International Financial Institutions "When the American economy sneezes, the rest of the world catches a cold.” In many parts of the world, international financial institutions (IFIs) play a major role in the social and economic development programs of nations with developing or transitional economies. This role includes advising on development projects, funding them and assisting in their implementation.
- 11. Examples of International Financial Institutions
- 12. The Bretton Woods System FIVE KEY ELEMENTS • the currency expressed in terms of gold or gold value to establish a par value • "the official monetary authority in each country (a central bank or its equivalent) would agree to exchange its own currency for those of other countries at the established exchange rates, plus or minus a one-percent margin" • the establishment of an overseer for these exchange rates
- 13. The General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO)
- 14. General Agreement on Tariffs and Trade (GATT) • forum for the meeting of representatives from 23 member countries
- 15. World Trade Organization (WTO) • an independent multilateral organization that became responsible for trade in services, non- tarriff-related barriers to trade, and other broader areas of trade liberalization • The general idea where the WTO is based was that of neoliberalism
- 16. The International Monetary Fund (IMF) and the World Bank These institutions aimed to help the economic stability of the world.
- 17. International Monetary Fund (IMF) • main goal was to help countries in trouble at that time and who could not obtain money by any means • lender or a last resort for countries that needed financial assistance
- 18. World Bank • main goals revolve around the eradication of poverty, and it funded specific projects that helped them reach its goals, especially in developing countries.
- 19. The Organization for Economic Cooperation and Development (OECD), the Organization of Petroleum Exporting Countries (OPEC), and the European Union (EU)
- 20. Organization for Economic Cooperation and Development (OECD), • most encompassing club of the wealthiest and highly influencial countries in the world
- 21. Organization of Petroleum Exporting Countries (OPEC), • was formed because member countries wanted to increase the price of oil, which in the past had a relatively low price and had failed in keeping up with inflation. Algeria, Angola, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, the Republic of the Congo, Saudi Arabia, the United Arab Emirates and Venezuela.
- 22. European Union (EU) • made up of 28 member states. Most members in the Eurozone adopted the euro as the primary currency, but some Western European nations like Great Britain, Sweden, and Denmark did not
- 23. North American Free Trade Agreement (NAFTA) • a trade pact between the United States, Mexico, and Canada created on January 1, 1994 • helps in developing and expanding world trade by broadening international cooperation • aims to increase cooperation for improving working conditions in North America by reducing barriers to trade as it expands the markets of the three countries.
- 24. History of Global Market Integration Agricultural Revolution Industrial Revolution
- 25. Agricultural Revolution domesticate plants and animals
- 26. Industrial Revolution • rise of industry • Mass production • Factories
- 27. Capitalism and Socialism • Capitalism is a system in which all natural resources and means of production are privately owned. • socialist system, the 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.