Samuel John R.

Indiano
BSBA FM 1H
The Contemporary World
Week 6
LOOKING BACK TO YOUR LESSON
Matching Type. Match column B with column C. Write the letter of the correct answer on
column A.
1. It is the social institution that has the biggest impacts on society and organizes all production,
consumption, and trade of goods. C. Economy
2. It is the fusing of many markets into one. A situation in which separate markets for the same
product become one single market. J. Market Integration
3. This system was created to restructure the world economy and ensure global financial stability.
G. IMF
4. This organization became responsible for trade in services, non-tariff related barriers to trade,
and other broader areas of trade liberalization. B. WTO
5. The main goal of this institution was to help countries which were in trouble or when their
economy collapsed and their currency was threatened. F. Bretton Wood System
6. This organization was formed because member’s countries wanted to increase the price of the
oil. H. OPEC
7. It is a trade pact between United States, Mexico, and Canada. I. NAFTA
8. It is an economic system in which a country’s trade and industry are controlled by private
owners. D. Capitalism
9. It is an economic system in which a country’s trade and industry owned by public or states.
E. Socialism
10. This tool reduced the role of human labor and shifted it from manufacturing based-economy.
A. Machines/Technology
 CHECKING YOUR UNDERSTANDING  
Critical Thinking: Explain the role and functions of the following concepts:
Role  Functions
1. Bretton Wood It helps to restore and sustain the
Systems benefits of global integration, by
promoting international economic
cooperation.
2. International The IMF's primary purpose is to ensure
Monetary Fund the stability of the international
monetary system—the system of
exchange rates and international
payments that enables countries and
their citizens to transact with each
other.
3. World Bank Its role is to reduce poverty by lending
money to the governments of its poorer
members to improve their economies
and to improve the standard of living of
their people.
4. NAFTA NAFTA reduced or eliminated tariffs
on imports and exports between the
three participating countries, creating a
huge free-trade zone.
5. WTO World Trade Organization (WTO) is
the only international organization
dealing with the global rules of trade to
ensure that trade flows as smoothly,
predictably and freely as possible.
 
The Functions Bretton Wood
Systems would ensure exchange
rate stability, prevent competitive
devaluations, and promote
economic growth.
The IMF employs three main
functions – surveillance, financial
assistance, and technical assistance
– to promote the stability of the
international monetary and
financial system.
The World Bank provides
financing, policy advice, and
technical assistance to
governments, and also focuses on
strengthening the private sector in
developing countries.
The North American Free Trade
Agreement (NAFTA) was
implemented in order to promote
trade between the U.S., Canada,
and Mexico. The agreement, which
eliminated most tariffs on trade
between the three countries.
 administering trade
agreements.
 acting as a forum for trade
negotiations.
 settling trade disputes.
 reviewing national trade
policies.
 building the trade capacity
of developing economies.
 cooperating with other
international organizations.
6. United To develop friendly relations among
Nations nations based on respect for the
principle of equal rights and self-
determination of peoples, and to take
other appropriate measures to
strengthen universal peace
7. Security The Security Council has primary
Council  responsibility, under the United Nations
Charter, for the maintenance of
international peace and security. It is
for the Security Council to determine
when and where a UN peace operation
should be deployed.
8. NATO NATO's fundamental goal is to
safeguard the Allies' freedom and
security by political and military
means. NATO remains the principal
security instrument of the transatlantic
community and expression of its
common democratic values.
9. NGOs To advocating for changes in law,
policy, procedure and administrative
rules.
10.Multinational Multinational corporations maintain
Corporations production and marketing operations in
different countries. In each country, the
business may oversee multiple offices
that function through several branches
and subsidiaries.
role- the role of it was to maintain
the freindship of every country
Function- to make the world
peace and eco freindly system
 to maintain international
peace and security in
accordance with the
principles and purposes of
the UN;
 to investigate any dispute
or situation that might lead
to international friction and
to recommend methods of
adjusting such disputes or
the terms of settlement
NATO's functions is to guarantee
the freedom and security of its
members through political and
military means.
They provide emergency relief
such as food, water, and
medical supplies for those whose
homes or towns have been
destroyed by disaster or war. They
also monitor the treatment of
prisoner of wars and go
to conflicts to make sure that no
war crimes are taking place.
 Promotion of foreign
investment.
 Technology transfer.
 Promotion of exports.
 Investment in
infrastructure.