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What are the differences between labor and environmental standards
Environment race to bottom, pollution havens, environmental spillover
Compare experiences between high income and low income countries
infant mortality, child labor, deforestation
What does it mean when we have a current account surplus
More export then imports
Primary Differnces between FDI and Foreign Portfolio Investment
FDI has long time horizons, FPI is easily liquated (stocks and bonds) and has shorter time horizon
Supply and Deamnd Of Us Dollar
Demand for Us Dollar: Increases if world demand for US exports increases, US interest rate differential rises, expected future exchange rates rise. Decreases if demand for US exports decreaes, Us intrest rate differential falls, expected future exchange rates fall
Supply for US Dollar: Increases when: US imports demand increases, Intrest rate differential falls, exp future exchange rate falls. Decrease when: import demand decreases, interest rate diff rises, expected future exchange rate rate rises
Whate is likely scenario to happen when the British pound depreciates against US dollar
US dollar increases in demand, US dollar supply increased
Number of Countries in EU
Number of Countries in Euro Zone
What are the four freedoms?
Freedom of movement of: Goods, capital, services and persons
Which countries are in the EU but do not participate in four Freedoms?
Spain, Greece, Portugal, Beligium, Norway(not in EU)
Which countries of in the 4 Tigers?
Hong Kong, Singapore, Taiwan, South Korea
Which Countries are in teh HPAE's?
Hong Kong, Indonesia, Japan, South Korea, Malayasia, Singapore, Taiwan, Thailand
HPAE's mechanisms to ensure growth
Failling inequality, accumulation of physical and human capital, sound macroeconomic fundamentals, promotion of exports
What happened to HPAE's in the 1980s?
Very High GDP growth ( crisis in 90's)
Key factors which contributed to HPAE's
Rapid accumulation of physical capital, stable financial institutions, absence of high inflation, Demographic transition-shift to low death and birth rates, rapid rate of income growth
Example of a partial trade agreement, what do two or more countries have to agrree to do
Liberalize trade in a selected group of catagories
If going from a FTA to a customs union, what do participating countries have to agree upon?
A common external tariff
List Types of International Economic Institutions
International Monetary Fund (IMF)
World Trade Organization (WTO)
Labor Standards from the international Labor Organization
Prohibition of forces labor
Freedom of association
The right to organize and bargain collectively
An End to the exploitation of child labor
Non-discrimination in employment
Conflicts over standards in International Trade and Labor and Environmental
Hazy borderline between protectionism and concern
The specific content of labor standards
The potential to set off a trade war
What should be considered standards for Global Trade?
Health & Safety, labor, environmental, technical
Components of the Current Account Vs Financial account
Current Account: Goods & Services, Investment income, Unilateral transfers
Financial Account: Net changes in the country's assets abroad, Net changes in the foreign-based assets in the country
Main participants in the Foreign Exchange Market
Retail customers, Commercial banks, Foreign exchange brokers, Central banks
Conditions for adopting a single currency
synchronized business cycles, high degree of labor and capital mobility, regioinal polices to deal with economic imbalances, an integration effort that goes beyong mere free trade
4 Main institions of the European Union
European Commission--Executive Body
Council of the EU-legislative branch with appointed members
European parliament- Representative banch popularly elected
Court of Justice- Supreme Court
Benefits and Costs of a single currency
Benefits: eliminates costs of currency conversions; reduces effects of exhcange rate risk
Cost: Eliminates monetary policy indepence; same monetary policy may not suit all nations (if labor is not fully mobile and business cycles aren't synced)
Tools used to promote specific industreis for trade and protectionism