CWP Exam 2 with 100% correct answers 2024.

Dual economy - answer-small elite and middle class with majority of the population in poverty 6 Variables that impact economic development - answer-1. history of the society 2. social cohesion 3. natural resources al (infrastructure and finance) 5. human services (need an educated workforce 6. population Modernization Theory - answer--1950's and 1960's -inspired by the Marshall Plan -first approach to economic development Marshall Plan - answer-foreign policy that offers aid after wars to help development Liberal Economics - answer--free trade -producing at least cost -eliminate trade barriers -minimum government intervention How does liberal economics view microcredit? - answer-effective because people take the initiative and work hard Dependency Theory - answer-dual economy export commodity concentration trade partner concentration heavy multinational corporation How does dependency view microcredit? - answer-does not offer an answer to global poverty Participatory Development - answer--improvement in quality of life -local leadership How does participatory development view microcredit? - answer-helps improve quality of life What are the 3 economic development perspectives? - answer-1. liberal economics 2. dependency 3. participatory development Bretton Woods Conference - answer--1944 (WWII Time) -country leader came together to reform world economy What came out of the bretton woods conference? - answer-countries leaders created the World Bank and the IMF (which have a sister relationship) What is the purpose of the world bank? - answer-to eliminate poverty and offer loans What is the purpose of the IMF? - answer-promotes economic stability and global growth What is a quota? - answer-limit on the amount of things imported or exported Structural Adjustment Provisions - answer--privatization -reduction in government spending -reduce regulation -create incentive to attract foreign capital What does GATT stand for? - answer-General Agreement on Tariffs and Trade Purpose of GATT - answer-promote international trade by reducing or eliminating trade barriers What is the foundational principle of free trade? - answer-nondiscrimination on foreign products What is the most common form of discrimination? - answer-tariffs Barriers to trade that are not tariffs - answer--subsidies -government purchasing -environmental/health/consumer protection rules What does WTO stand for? - answer-World Trade Organization About WTO - answer--created by the Uruguay Round () -up as of Jan 1995 in Geneva -overseas 95% of world trade -activities: 1. implement trade agreement 2. monitor trade policies 3. provide dispute settlement Criticisms of the WTO - answer--undermines sovereignty -undemocratic/lack of transparency -regulatory chill (hesitation to pass policies) What does NAFTA stand for? - answer-North American Free Trade Agreement When was NAFTA founded and by whom? - answer-1994 by Bush 41 and Clinton Goals of NAFTA - answer--increase economic development in Mexico -offer lower cost investment location for US & Canada companies Provisions of NAFTA - answer--eliminate most tariffs -environmental and labor side agreements to counter Mexican related criticism Overall Results of NAFTA - answer--benefits to all 3 country's economy -major losses in concentrated sectors -US lost 15k jobs (auto and textile) - Mexico has not had much growth What does ISDS stand for? - answer-Investor state dispute settlement What is the ISDS? - answer--system where investors can sue countries for alleged discriminatory practices What country is always targeted by ISDS? - answer-Canada What does USMCA stand for? - answer-US Mexico Canada Agreement When was the USMCA created? - answer--Sept 30 -signed Dec 1 before Mexican president is out of office What changes in the USMCA that differ from NAFTA? - answer--opening of dairy market in Canada -updates drawn from trans pacific partnership -auto manufacturing -increase North American content and bring jobs back -minimum wage goes up Changes to the ISDS under USMCA - answer--eliminate lawsuits involving Canada - limit lawsuits between US and Mexico US China Trade War - answer--Trump imposed tariffs on China and China countered back with similar tariffs -China is trying to replace US as an initial supplier What caused the US China trade war? - answer--subsidization of export products -piracy -disproportionate government support Current challenges to globalization - answer--protectionist policies -disappointing business profits -MNC started questioning global expansion and are considering investing domestically again Chapter 4 Consequences of Inequality - answer--diminishes poor people's political involvement and access to education, healthcare etc -enables wealthy to refuse compromises Chapter 4 Debate over the relationship of globalization and inequality - answer-globalists: -argues that globalization has increased economic growth and decreased inequality & poverty Anti-globalists: -perceive globalization as negative and destructive force that is responsible for increasing global inequality because globalization only benefits the rich Chapter 4 What are the 6 dimensions of poverty? - answer-1. hunger 2. psychological dimensions 3. inadequate infrastructure 4. low levels of literacy 5. health problems 6. inadequate income Chapter 4 Recommended Strategies to close the gap - answer--education -gov policies and free trade -reduce corruption -improve agriculture -foreign aid help -pay attention to women Chapter 4 Food Insecurity - answer--prices of food are rising -malnutrition Chapter 4 Green Revolution - answer--wanted to promote growth of crops in the same amount of land by utilizing fertilizers -crops actually growing slower than population -fertilizers polluting toxic blooms of algae Chapter 4 Causes of current food crisis - answer-1. rapid economic growth of Asia 2. manufacturing biofuels from food crops Chapter 5 Grameen Bank - answer--model for institutions in field of microcredit -won nobel peace prize -principles: human rights, women, trust -practices: operate in groups of 5 PR 4 Article 1 How did the IMF respond to global crisis? - answer-strengthened lending capacity and approved major overhaul of financial support mechanisms PR 4 Article 1 What is the IMF's primary financial source? - answer-member quotas PR 4 Article 2 What was the result of talks between Argentina and IMF? - answer-IMF helped boost currency with 950 million dollar investment and notes were issues with interest rate of 50% PR 4 Article 3 What is Greece's current status? - answer-it is the last country to exit financial bailouts PR 4 Article 3 What is the IMF's position on Greece? - answer-they do not believe the debt can be repaid without creditors easing up PR 4 Article 3 What are the positive current economic trends in Greece? - answer--unemployment is decreasing -reduced budget deficit PR 4 Article 3 What are the negative current economic trends in Greece? - answer--weak banks -population at risk for poverty -so much debt PR 4 Article 4 What does the world bank do? - answer-try to reduce poverty Which country has the highest quota? - answer-US lead by 11% What are the criticisms of NAFTA? - answer-US has lost a lot of jobs Definition and unit of analysis - answer-how poverty is measured Does GDP cause inequality? - answer-yes Fate of the Doha Round - answer-failure Why did the Doha Round fail? - answer-trade dispute settlement had already been solved Why is the WTO court close to breakdown? - answer-the US continues to block judge appointments Rising tensions between US and its trading partners has caused the WTO to...? - answer-cut its world merchandise trade forecasts for 2018 and 2019 Recent tariff policy changes by China are a probable indication that...? - answer-China plans to dig in for a long trade war with the US Thucydides Trap refers to..? - answer-the fact that war tends to result when a rising power challenged a ruling power According to the fifth article in PR 5, Canada... - answer-none of the above