Ukraine In The Context Of Accessing WTO

1. GLOBALIZATION: CONCEPTS AND EFFECTS

Exercise. Please, find the correspondence between key terms and definitions.

I. Key concepts and definitions:

Arguments in favour of trade liberalization; Economic Globalization;

Customs Union; Liberalization; Arguments against trade liberalization;

Economic Integration; Forms of Economic Integration;

Globalization, Free Trade Area.

1. __________________________________________ – the process of making economic activity policies less constraining. Reduction and /or removal of tariff and non-tariff barriers in international trade.

2. _________________________________________ – it can cost jobs and even lives, as cheaper import goods flood the market.

3. _________________________________________ – it lowers consumer costs, increases efficiency and fosters economic growth.

4. __________________________________________ – refers to trade unification among different countries by the partial or full abolishing of customs tariffs on trade, including harmonization of laws, regulations and standards. The goal is to increase trade and free movement of goods, capital and labor.

5. ___________________________________________ – free-trade areas, customs unions, common markets, economic unions.

6. ___________________________________________ – is a form of economic integration which eliminates most trade barriers (such as tariffs, quotas) on the flow of goods and services among its member countries. However, member countries negotiate trade agreements separately with external countries. Example: North American Free Trade Agreement between the U.S., Canada and Mexico (NAFTA).

7. ___________________________________________ – is a form of economic integration which grants free trade among its member countries while charging a common set of import tariffs to external countries (common external tariff). Example: European Union.

8. ___________________________________________ – the process of interaction among the countries of the world in other to develop the global economy and increase material wealth through an international division of labour by efficiencies catalyzed by international trade relations and competition. It is the process by which regional economies, societies and cultures have become integrated through communication, transportation and trade.

9.____________________________________________ – theintegration of national economies into the international economy through trade, foreign direct investments, capital flows.

II. Effects of Globalization:

Technological Progress;

Power of the WTO, IMF and WB;

Improvement of International Trade;

Greater Mobility of Human Resources across Countries;

Increasing Influence of Multinational Companies.

1. ______________________________________________: the number of countries where products can be sold or purchased has increased dramatically.

2. ______________________________________________: because of the need to compete and be competitive globally, countries have to upgrade their level of technology.

3._______________________________________________: often, the head office of the company is found in the country where the company was established while its various subsidiaries are located and registered in other countries. An example is a car company whose head office is based in Japan. This company has branches in different countries. While the head office controls the subsidiaries, the subsidiaries decide on production. The subsidiaries are tasked to increase the production and profit. They are able to do it because they have already penetrated the local markets.

4. _______________________________________________: strengthening power and influence of international institutions such as the World Trade Organization, International Monetary Fund and World Bank.

5. _______________________________________________: global companies in the US and Europe take advantage of the cheaper labor and highly-skilled workers that other countries can offer.

Дата добавления: 2015-11-14