Tuesday, January 6, 2009

Economic Globalization

Exchange Rate: The value of a currency compared to the value of another. Example: The Canadian dollar is currently $0.84 American.
The World Bank: An agency of the united nations that is controlled by the 184 countries in membership. It provides loans to less developed countries with some conditions meant to encourage democracy. they offer long term assistance. The world bank is run with the interest earned from the loans they give out.
International Monetary Fund: In charge of monitoring exchange rate and short term assistance. it is funded by quotas from members. A countries quota rate is based on how big their economy is.
Free Market Economy: an economy were the government doesn't intervene in businesses and is privatised.
Free Trade: an agreement to trade with other countries were the tariffs are lowered.

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