- Cold War- 1946-1989; led by the Soviet Union & Western capitalist democracies, lead by the United States; Capitalists vs. Communist Countires
- During the Cold War, operated under centrally planned economic systems-government planners decided what goods to produce, and how much.
- Russia, Polland and East Germany embraced free market economy
- Free marked expanded when China opened upto Western ways of business
- China- biggest country for manufacturing & India- cheaper through telephone and computers
- Mutual Fund- a company that combines its clients money an invests it in a collection of stocks, bonds, and other securities
- end of WW2, 50 countries from all over the world created United Nations
- the General Agreement on Tariffs and Trade (GATT) @ 1947 was and agency of the United Nations
- it operated on 4 principals, including 23 countriese
- Conducting trade ina non-discriminatory manner: None of the 23 countries were given trading advatanges & were equal & recieved equal treatment
- Treating imported goods from a memer country in the same manner as similar domestic goods: Imported goods going not be taxed at a higher rate
- Protecting domestic industriesthrough tariffs and not through measures such as import quotes of fees: a tax put on trading goods to keep competition down but increases the price
- Requiring any country that applied for membership to present a list of tariffs and other trade restrictions imposed on member countries: Once apart of GATT, they could only change or argue reductions to all trade restrictions
- Canada joined freer trade in 1989
- The Free Trade Agreement tried to remove most tariffs
- US wanted to trade Canada natural resources for trade rights
- If that negotiation had been reached, it was argued that Canada would lose its political independance to the US
- 1994 FTA was expanded to Mexico, this created the North American Free Trade Agreements
- Largest Free Trade area in the World, in 1993 the population was 360 million
- Since Mexico joined the FTA, Mexican exports increased by 200% between '93 & '03
- Some think freer trade provides counties around the world with great opportunities and benefits
- Others think that freer trade actally results in a number of negative impacts for countries and their citizense
- Because the US has ten times the population as Canada, American industries could easily swamp or shut down Canada's smaller market with their products or services, which would force local, small industires to adapt and complete a face closure
- South American Trading Blocs; the richest 20% of the population owns more than 60% of the wealth
- Poorest 20% owns 5% of the wealth
- this is in hopes to improve economiv stability and increase investment by joining American trading blocs
- Mercado, Common Market of the South, this includes Argentina, Brazil, Parzuay, and uruguay; these are the major trade organizations. Also Chile, Bolivia, Colombia, Peru, Ecuador, and Venezula
- main objective: to improve ecomomics by opening markets, promoting economic development, and conserving the enviroment
- 1999 Mercosur and Canada began trying for merger, they were trying to create a South American free trade area, this would be called Comunidad Suclamericans de Nacones
- Eliminate all tariffs by 2019 and plan to model the new community after the European Union
- By joining trading blocs they can increase investment in their economies
- Common Market: the strongest for of regional integration
- including the free trade of goods and services and the free movement of capital and labour within the trading bloc
- European Union: consisting of 25 countries, is the largest and most powerful common market, with a population of nearly 457 000 000; not a federation but has an anthem, flag, founded date and currency
- in European Union government parliament and council share the responsibility for passing laws, and making policy desisions
- New parliament elected every 5 years
http://lchshumanities10.wikispaces.com/3rd+Diplomatic+Posting
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