Question

What are the important summary points/ key concepts of chapter 7 in the textbook International Economics by Robert J. Carbaugh 14th edition? ISBN 978-1-133-94772-1

Answer 1

• Buffer stock :- In buffer stock to buy and sell a commodity in large amounts a producers association is prepared .

• Cartel :- In order to improve their profits and dominate the market A group of independent market participants who conspire with each other.

• Flying-geese Pattern of economic growth :-In this pattern nations would move up in various aspects like in technological development.

• Generalized system of preferences (GSP) :- It is a type of preferential tariff system that provides the reduction in tarriff on various products.

• International commodity :-It is a virtual or physical marketplace for selling, buying and trading primary or raw products.

• International Monetary Fund :- It promotes monetary cooperation and international financial stability. It also regulates international trade, enhance employment also do all measures which helps to reduce global poverty

• Multilateral contracts :- It is an international agreement that consists of three or more parties.

• World Bank :-It is an international financial institution which provides loans and grants to the weak countries governments for the purpose of development of their capital projects.

Various problems facing by the developing nations are

1.unstable export markets,

2.limited market access.

3.worsening terms of trade

By following the free policies like trade India is another example of an economy which has Continuously improved its performance.

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