Understanding Trade Agreements: WTO's Advantages & Principles, Quizzes of International Economic Relations

Download Understanding Trade Agreements: WTO's Advantages & Principles and more Quizzes International Economic Relations in PDF only on Docsity! TERM 1 4. I-Trade Agreements DEFINITION 1 Multilateral Trade Agreements regional trade Agreements Advantages of T-Agreements TERM 2 *Multilateral Trade Agreement DEFINITION 2 WTO (world trade organization): deals w/ the rules of trade b/w nations @ a global or near-global lvl-negotiating forum: born out of and works are a result of negotiations-set of rules or contracts binding govts to keep their trade policies w/in agreed limits-tries to help trade flow as freely as possible-helps settle disputes, neutral procedure based on agreed legal foundation TERM 3 **principles of trading system (WTO) DEFINITION 3 1) Most Favored Nation MFN:-principle of non-discrimination, co can't discriminate b/w trading partners-apply most favored percentage to ALL trading cos-> avg tariff rate decreases => world closer to FT2) National treatment:Home co has to treat Home consumers& producers AND Foreign consumers & producers EQUALLY TERM 4 *Regional Trade Agreement DEFINITION 4 Free Trade Area: free trade among memb cos + each co is free to choose tariff rate to outside cosCustoms Union: free trade among memb cos + common tariff rate to outside cosCommon Market: customs union+ free movement of Labor and Capital among memb cosi.e. EU, NAFTA, Mercosur, ASEAN, bilateral agreements TERM 5 * Advantages of I-Trade Agreements DEFINITION 5 mobilizes domestic support for freer trade avoids trade war