World Regional Geography Unit I: Introduction to World Regional Geography Lesson 3: Institutions of Economic Integration Question

Important Global Institutions of Economic Integration The EU and especially the Eurozone NAFTA OECD IMF WTO

World Trade Organization Objective: to liberalize international trade Founded as the GATT (General Agreement on Tariffs and Trade) in 1948 WTO provides framework for negotiation of trade deals between countries Negotiations happen in “rounds” Current round: The Doha round, commenced in 2001

World Trade Organization Image Source: Membership: 153 Headquarters: Geneva

International Monetary Fund Image Source: Objective: to oversee the global financial system – Supervises macroeconomic policies of member countries – Works to stabilize the exchange rates – Provides financial assistance to countries that experience serious financial and economic difficulties using funds deposited with the IMF by other member states Slovakia’s share in the IMF represents about 0.20 % of the total voting rights

International Monetary Fund Image Source: Founded 1945 Membership: 187 – almost all states in the world (exceptions: Cuba, North Korea, Vatican) Headquarters: Washington DC

Organization for Economic Cooperation and Development Image Source: Objective: – To achieve the highest sustainable economic growth and employment – To contribute to expansion of world trade on a multilateral basis PISA: Programme for International Student Assessment

Image Source: Established: 1961 Membership: 34 Slovakia since 2000 Headquarters: Paris Organization for Economic Cooperation and Development

Image Source: Objective: Promote Free Trade Membership: USA, Canada, Mexico Largest trade bloc in the world Established: 1994 North American Free Trade Association

Image Source: European Economic and Monetary Union Eurozone: the common currency zone in Europe Established: 1999/2002 Membership: 17+ Managed by the European Central Bank – Primary objective of the ECB: to maintain price stability within the Eurozone – i.e. to keep the inflation low

Image Source: European Economic and Monetary Union Advantages – Currency stability – No need to exchange money – No hedging costs – Lower interest rates Disadvantages – Difficulties arising from differing economic performances – Loss of national sovereignty in economic matters