Chapter

3.5. International Economic Communities*

From IntroductionToBusiness OP 8D04gAa

Concepts

1. What roles do the World Bank and the IMF play in global finance?

   "The International Monetary Fund (IMF) was founded in 1945, one year after the creation of the World Bank, to promote trade through financial cooperation and eliminate trade barriers in the process. T

2. How do nations create international economic communities?

   "Nations that frequently trade with each other may decide to formalize their relationship. The governments meet and work out agreements for a common economic policy. The result is an economic communit

3. How did NAFTA affect trade among the United States, Canada, and Mexico?

   "The North American Free Trade Agreement (NAFTA) created the world’s largest free-trade zone. The agreement was ratified by the U.S. Congress in 1993. It includes Canada, the United States, and Mexico

4. What are the major features of Mercosur, CAFTA, and the European Union?

   "The largest new trade agreement is Mercosur, which includes Peru, Brazil, Argentina, Uruguay, and Paraguay. The elimination of most tariffs among the trading partners has resulted in trade revenues t