POLS 3125 Lecture Notes - Lecture 14: Foreign Direct Investment, Brenton Wood, World Trade Organization
8 Feb 2018
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Document Summary
Not even more economic power than the countries themselves. Change from protectionist policy of high tariffs. Protectionism adopted for the goal of future industrialization. No longer need protection as america was already a leading industrialist + most economic. Economy europe economy suffered during the war. A way of lowering taxes + trade barriers. Problem = informal organization did not enforce rules on the member. Had more power than the previous organization international law applied. Only the leading state controls the organization. Quasi-floating currency speculation gambling of a sort trading values of currency involves thousands of dollars. Wb: moved towards poor countries gives loans to the third world countries to improve their economy combat poverty and other problem in these countries. Imf: purpose changed from before after the abandonment of a fix exchange rate. High interest rates poor countries could not pay back their loans conditional loans set by the imf. Two types of investments: greenfield, mergers + takeovers.
