1. What are the differences between labor and environmental standards
    Environment race to bottom, pollution havens, environmental spillover

  2. Compare experiences between high income and low income countries
    infant mortality, child labor, deforestation
  3. What does it mean when we have a current account surplus
    More export then imports
  4. 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
  5. 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
  6. Whate is likely scenario to happen when the British pound depreciates against US dollar
    US dollar increases in demand, US dollar supply increased
  7. Number of Countries in EU
  8. Number of Countries in Euro Zone
  9. What are the four freedoms?
    Freedom of movement of: Goods, capital, services and persons
  10. Which countries are in the EU but do not participate in four Freedoms?
    Spain, Greece, Portugal, Beligium, Norway(not in EU)
  11. Which countries of in the 4 Tigers?
    Hong Kong, Singapore, Taiwan, South Korea
  12. Which Countries are in teh HPAE's?
    Hong Kong, Indonesia, Japan, South Korea, Malayasia, Singapore, Taiwan, Thailand
  13. HPAE's mechanisms to ensure growth
    Failling inequality, accumulation of physical and human capital, sound macroeconomic fundamentals, promotion of exports
  14. What happened to HPAE's in the 1980s?
    Very High GDP growth ( crisis in 90's)
  15. 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
  16. 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
  17. If going from a FTA to a customs union, what do participating countries have to agree upon?
    A common external tariff
  19. List Types of International Economic Institutions
    • International Monetary Fund (IMF)
    • World Bank
    • World Trade Organization (WTO)
  20. 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
  21. Conflicts over standards in International Trade and Labor and Environmental
    • effectiveness
    • Hazy borderline between protectionism and concern
    • The specific content of labor standards
    • The potential to set off a trade war
  22. What should be considered standards for Global Trade?
    Health & Safety, labor, environmental, technical
  23. 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
  24. Main participants in the Foreign Exchange Market
    Retail customers, Commercial banks, Foreign exchange brokers, Central banks
  25. 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
  26. 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
  27. 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)
  28. Tools used to promote specific industreis for trade and protectionism
    Export subsides, import licensing, quotas & tarrifs, industial licensing
  29. Mechanisms the HPAE's use to share wealth across society
    Land Reform, Free public education, free basic health care, significant invenstments in rural infrastructure
  30. BRIC countries
    Brazil, Russian, India China
Card Set
Economics Final