Ib test chapter 5

What is a trade agreement?

An enforceable treaty between two or more countries that addresses the movement of goods and services, eliminates trade barriers, establishes terms of trade and encourages foreign investment.

What is a bilateral agreement?

Involves two parties

What is a multilateral agreement?

An agreement between 3 or more parties.

What were the 4 advantages of NAFTA?

-Increase in trade, lower prices, economic growth, job creation

Since the creation of NAFTA, many higher-paying jobs have been created in what sectors?

education, engineering, insurance, banking

What are 3 disadvantages of NAFTA?

lost jobs and low wages, Human rights issues and deterioration of the environment

What kinds of jobs were lost under NAFTA, to whom and why?

manufacturing Jobs in U.S and Canada lost to Mexico (cheap labor)

Where jobs have stayed in Canada and the U.S. what have employers threatened to do?

employers may threaten to move manufacturers facilities if employees do not accept lower wages

Since NAFTA came into effect, what has happened with respect to auto assembly plants?

auto assembly plants in Canada,U.S and mexico

What Mexican workers have lost jobs and why?

Farmers who couldn't compete with larger US farmers when tariffs were lifted

What did many workers do as a result?

went to work in U.S-owned Factories Known us may uiladoras (low Lages) or migrated to U.S

Why has Mexico's pollution increased since the inception of NAFTA?

It's policies have favored economic over environmental regulations (mexican farmers were pressured to use more fertilizers and pesticides)

What has Canada been criticized for environmentally?

The development of the tar Sands for oil production in Alberta, since extracting oil had a heavier environmental then traditional methods

In the U.S. what project has been contested and by whom?

The trans-Canada owned keystone XL Pipelines running from Alberta tar Sands-nebraska contested by US Farmers and environmentalists

What happened to the free trade agreements with Iceland, Liechtenstein, Norway and Switzerland?

They are all in the Canada - European Free trade Association Acrema

What country pulled out of the Trans-Pacific Partnership four years ago and under what President?

The US, under trump

What agreement has replaced the TPP?

Comprehensive and progressive agreement CPIPP

The CBTPP is currently in force with respect to what countries?

Australia,Canada,Japan,mexico

This agreement was set to be signed in January 2005, but was not, Why not?

Brazil and Venezuela opposed the subsidies and agricultural provisions in the agreement.

What countries did it involve?

All countries in North and South America except cuba

How large a trading zone would it have represented?

The worlds largest

What is the current medical condition of the FTAA?

Long coma with no signs of life for the past several years.

The main purpose of tax treaties is to prevent what?

Double taxation and tax evasion

If a Raptor player remains a non-resident of Canada and a resident of his home state, is Is he taxable in Canada? Why?

Yes because non-residents are taxable if they are employed here

Do Lebron and other players who play for American teams have to pay Canadian taxes? Why?

No, because of a tax treaty between Canada and the US that exempts players resident in the US from taxes on games they play in Canada.

How much in Canadian taxes does a non-resident Raptors player pay for games played in the U.S.?

Nothing because a U.S. resident on a canadian team who performs a portion of his duties outside of Canada would not be subject to Canadian taxes on those days

Does a player have to pay taxes to the U.S. on that percentage of his income as well? Why?

No because the player receives credit for the taxes he paid to canada when he Files his US return.

Why is Crowe Soberman a reliable site for this information?

accounting firm they might be Subject to be to labilly if the information on their site is wrong

How many countries are in the EU today?

27

What was the most recent country to join?

Croatia

What country signified its intention to leave after a referendum on June 23, 2016?

Great Britain

What is the moniker that signifies its departure from the EU?

Brexit

What is the current status of its proposed exit?

The UK left the EU on Jan 3, 2020. in 2020 they reached an agreement, with a partnership rules that apply between EU and UK as of Jan, 2022

What is the approximate population of all the countries in the EU?

447 million

What in your considered opinion are the 3 main advantages of the Euro?

Decreases risk of exchange(rate Fluctuations), Price Transparency( consumers able to compare prices Country to Country),Eliminates transaction costs of exchanging currency

What in your considered opinion are the 3 main disadvantages?

Initial costs, Lack of national control,Loss of tradition

What is Canada's second largest trading partner after the U.S.?

The European Union

What's the difference between a trade agreement and a trade organization?

Trade agreements (enforceable treaties) Trade organizations ( groups to help with flow of goods and services)

How many members are there now?WTO

164

What was the largest country to join since your text was published? WTO

russia, August, 2012

What are the WTO's 3 main purposes?

A Forum For negotiations ,A set of rules that set guidelines for trade between nations, Dispute settlement

What is the drawback of the WTO encouraging countries to produce what they can most efficiently?

recommend developed country grows a crop rather than an underdeveloped country because it will be cheaper to purchase, underdeveloped country may not be able to produce an alternative crop

What is the drawback of WTO's patent laws?

They prevent other companies from producing generic, affordable versions of patented drugs.

What is Canada's most famous dispute brought before the WTO?

Softwood lumber

Where are APECs member countries located ?

On the pacific ocean

What countries were you surprised to learn are members of APEC?

group of eight (8)

Is the G8 still the G8?

No, now G7

How would you describe the countries in the G8?

they have the major economies of world

How often does the G8 meet?

once a year

What need did the G20 fill?

They need to develop beyond the G8 and acknowledge the influence that other countries were having on world economies and trade

What does OECD promote?

Economic growth

What does the World Bank provide to developing and poor countries?

Monetary and technical support

What does the IMF do that is similar to what the World Bank does?

lends money to poor countries,technical support,raise living

According to the IMF site, what is the fundamental difference between the two?

The bank is a development institution.IMF is cooperative.Bank tries to reduce poverty and promote economic and social development.IMF tries to stabilize exchange rates and rectify sudden variations in exchange values.

What was the main purpose of the UN when it was created, and arguably still its main purpose?

To keep peace throughout the world

What is a geographic indication?

Name or sign that identifies a good as originating in the terrorito of a member of the WTO.The good is an attribute to its geographic origin.

Three examples of products associated with geographic indicators?

Cuban cigars,basmati rice and irish whisky.

What is a global strategy?

This strategy regards the world as one big market.product and market are uniform across the globe.

What is a multidomestic strategy?

This strategy tries to customize products, services and marketing for local culture.

What is a transnational strategy?

This strategy tries to combine the best elements of global and multidomestic strategies.Attempts to respect the needs of the local market.