THE CONTEMPORARY WORLD(semifinals)
TRADE (GATT)
Market Integration – occurs when prices
among the different locations or related
goods follow similar patterns over a long time
period.
International Financial Institutions – is a
financial institution that has been established
(or chattered) by more than one country, and
hence is subject to international law.
3 Sectors of Economic Systems
1. Primary Sector
 Extracts raw materials from natural
environment
 E.g. Farmers, Miners
2. Secondary Sector
 Gains raw materials and transforms
them into manufactured goods.
 E.g. petroleum refinery
3. Tertiary Sector
 Involves services than goods
 Doing things than making things
 E.g. Education, Transportation
BRETTON WOODS SYSTEM
Established due to sufferings of world ‘s major
economies because of World War I, Great
Depression in 1930’s and World War II
5 ELEMENTS OF BW SYSTEM
1. Expression of Currency in terms of gold or
gold value to establish a par value
2. Official Monetary Authority in each country
( central bank or national treasury)
3. Establishment of an overseer for the
exchange rates, thus, IMF was founded
4. Eliminating restrictions on the currencies of
the member states in international trade
5. US dollar became the global currency
GENERAL AGREEMENT ON TARIFFS AND
An international organization for liberalization
of trade that grew out of Bretton Woods
System and primarily focuses on tariff
reduction to any international trading system.
WORLD TRADE ORGANIZATION (WTO)
Its operations are premised on the neoliberal
idea that all nations benefit from free and
open trade and it is dedicated to reducing and
ultimately eliminating barriers to such trade.
TRADE-RELATED ASPECTS OF INTELLECTUAL
PROPERTY RIGHTS (TRIPS)
Is an international legal agreement between
all the member nations of the World Trade
Organization (WTO). It sets down minimum
standards for the regulation by national
governments of many forms of intellectual
property (IP) as applied to nationals of other
WTO member nations.
AGREEMENT ON TRADE-RELATED
INVESTMENT MEASURES (TRIMS)
Are rules that apply to the domestic
regulations a country applies to foreign
investors, often as part of an industrial policy.
These are range of operating or performance
measures that host-country governments
impose on foreign firms to keep them from
having distorting effect on trade in goods and
services.
International Monetary Fund (IMF)
It deals with exchange rates, balances of
payments, international capital flows, and the
monitoring of member states and their
macroeconomic policies.
WORLD BANK (WB)
It provides funds to government-sponsored
or guaranteed programs in so-called Part II
(member states that are middle-income or
creditworthy poorer nations).
EUROPEAN UNION (EU)

This organization was designed

to enhance European political and economic
integration by creating a
single currency (the euro), a unified foreign
and security policy, and common citizenship
rights and by advancing cooperation in the
areas of immigration, asylum, and judicial
affairs.

ORGANIZATION OF PETROLEUM EXPORTING

COUNTRIES (OPEC)

It is a multinational organization that was

established to coordinate the petroleum
policies of its members and to provide
member states with technical and economic
aid.

FOREIGN DIRECT INVESTMENT (FDI)

It involves investments by one firm in

another firm that exists abroad in a different
nation-sate, with the intention of gaining
control over the latter’s operation.

MULTINATIONAL CORPORATIONS (MNC)

A firm that has the power to coordinate and

control operations in more than two
countries, even if it does not own them.

Global corporations

INTERNATIONAL STANDARD ORGANIZATION

(ISO)

An international institutes of technical

standards that sustain and vindicate the
quality assurance of the goods and services
available in the global market.