Tamilnadu Samacheer Kalvi 12th Economics Notes Chapter 8 International Economic Organisations Notes
→ The present chapter on International Economic Organisations discusses the role played by the IMF in solving the problem of trade related issues and credit facilities.
→ The financial, regulatory and consultative functions of IMF and its benefits to India have been dealt with.
→ Further, the objectives, functions and achievements of the World Bank and WTO have been covered.
→ Also, the various agreements implemented by the WTO such as TRIPS, TRIMS, GATS, AoA, MFA have been discussed.
→ The final part of the chapter deals with the regional economic integration among the trade blocks such as SAARC (South Asian nations), ASEAN (South East Asia) and BRICS and their achievements.
→ Common Market: A group formed by countries within a geographical area to promote duty free trade and free movement of labour and capital among its members.
→ Customs Union: Free trade area (zero tariffs among members) with a common external tariff.
→ Economic Union: It is composed of a common market with a customs union. The participant countries have both common policies on product regulation, freedom of movement of goods, services and the factors of production and a common external trade policy.
→ Free Trade Area: A region encompassing a trade bloc whose member countries have signed a free-trade agreement (FTA). Such agreements involve cooperation between at least two countries to reduce trade barriers.
→ Multilateral trade agreement: It is a multi national legal or trade agreements between countries. It is an agreement between more than two countries but not many.
→ Special Drawing Rights: International monetary reserve currency created by the International Monetary Fund (IMF) that operates as a supplement to the existing money reserves of member countries.
→ Structural Adjustment Facility: Providing additional balance of payments assistance on concessional terms to the poorer member nations to undertake strong macroeconomic and structural programmes.
→ Trade blocks: They are a set of countries which engage in international trade together and are usually related through a free trade agreement or other associations.
→ Trade Related Intellectual Property Rights (TRIPs): TRIPs include copy right, trade mark, patents, geographical indications, industrial designs and invention of microbial plants.
→ Trade Related Investment Rights (TRIMs): TRIMs are related to conditions or restrictions imposed in respect of foreign investment in the country.