Tina Lin Lei CIA4U

Global trade Specialization Absolute and comparative advantages Pros/cons Organizations and agreements International monetary fund and its impacts Multilateral and bilateral negotiations

“ Globalization, in an economic contest, is the movement of goods, services, technology, investment, ideas and people throughout the world. ”

Absolute and comparative advantages 1. Definition ApplesPeaches Canada United States Total ApplesPeaches Canada United States Total

ApplesPeaches Canada Unites States Total For producing peaches: Canada: producing 1 peach needs to give up 2 apples (1000/500=2) United States: producing 1 peach needs to give up 1.5 apples (1200/800=1.5) Therefore, the United States should use all its resource to produce peaches since they have lower opportunity cost to in peach production. Activity: Calculate the opportunity cost of producing one peach for each country.

What are some positive and negative side of Specialization Global trade?

Positive effect: Positive effect: 1. Higher output 2. More variety 3. Competition and lower prices Negative effect: 1. Independence 2. Monopoly 3. Unemployment

Positive effect: 1. Outsourcing 2. Lower price 3. Increased production 4. Innovation 5. Better jobs 6. Increased capital flow Negative effect: Negative effect: 1. Lost Canadian jobs 2. Fear of job loss 3. Loss of Canadian productivity 4. Exploitation of cheap labour 5. Increase in the income gap 6. Influence of MNCs on government

General Agreement on Trade and Tariff  Canada, US, and 21 other nations  International agreement to reduce trade barriers.  Total of 8 round  Average tariff reduced from 40% to 5%.  Volume of national merchandise trade multiplied 20- fold.

World Trade Organization  A Multilateral trade negotiation  Replaced GATT in 1995  12 more countries joined  Average tariff continued to fall A multilateral trade negotiation A multilateral trade negotiation involves simultaneous agreements among a number of nations. A bilateral negotiations A bilateral negotiations involves only two nations.

The roles of WTO The roles of WTO  Liberalize world trade  Sole power to adjust based on the dispute.  Removing trade barriers.  Issue of intellectual property rights  Rules regarding foreign investment by multinationals

International Monetary Fund The International Monetary Fund (IMF) is an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

Haiti, as it is one of the poorest countries, is now facing huge debt of $268 million after the earthquake, which is mainly owned by IMF. Although it was wiped out latter, Haiti government borrowed another $50 million which is going to be charged by 0.5% in the future. Even though they get the aid from IMF, they will need to pay them off eventually. It could be another financial crises for Haiti when IMF calls the money back.

Haidi

# Does IMF help or hurt the poor countries?

1. Go to the website: Socrative Student (GOOGLE IT!) 2.Login the room number:

Dearden, Nick. "IMF Debt Cancellation for Haiti at Last (and a New Loan)." CADTM -. CADTM, 30 July Web. 23 May "Haiti’s Martelly Marks Two Years in Office." Caribbean Journal Haitis Martelly Marks Two Years in Office Comments. Caribbean Journal Staff, 15 May Web. 23 May 2013.

McManus, Wade. "IMF Imperialism in Haiti." Collegian Archives. N.p., n.d. Web. 23 May Riley, Geoff. "Specialisation and Trade." Specialisation and Trade. Tutor22, 23 Sept Web. 23 May "Top Ten Reasons to Oppose the IMF." Top Ten Reasons to Oppose the IMF | Global Exchange. N.p., n.d. Web. 23 May 2013.

Tina May 24 th,2013