ADM 3318 Lecture Notes - Lecture 11: World Trade Organization, Purchasing Power Parity

• School: University of Ottawa
• Department: Administration
• Course: ADM 3318
• Professor: Tyler Chamberlin

Document Summary

Global integration - countries worldwide cooperate through the wto. > trade creation: increase the level of trade between partner nations. > political cooperation: a group of nations is less likely to be pushed around. > trade diversion: reduction of trade with non-member countries. > loss of sovereignty for individual nations (issues such as immigration) > consumer price inflation must be below 3. 2 percent. > consumer price inflation must not exceed that of high performing countries by more than. > government debt < 60% of gdp, general government deficit < 3. 0 percent. > foreign exchange rate = price of one currency in terms of another. > purchasing power parity = theory that suggests that in the absence of trade barriers (such as tariffs), the price for identical products sold in different countries must be the same. > balance of payments = country"s international transaction statement. > average daily turnover in foreign exchange (traditional instruments) was estimated to be.