WGU D080 Module #2 Questions with Verified
answers
AAA Rating Ans✓✓✓ - The highest possible rating that a credit rating agency may
assign for a bond
Assist Developing Nations (WTO Function) Ans✓✓✓ - Many developing countries
and emerging markets lack the experience and technical expertise needed to deal
with extensive and very comprehensive trade agreements.
- The WTO provides them with critical training and support, thereby ensuring that
the WTO is inclusive and equitable toward both the wealthiest and most
impoverished nations in the world
Balance of Payments Ans✓✓✓ - difference in total value between payments into
and out of the country over a period of time
Bretton Woods Institutions Ans✓✓✓ - twin intergovernmental pillars supporting
the structure of the world's economic and financial order
- IMF & The World Bank
Conditionality Criticism on the World Bank's Loans Ans✓✓✓ - enforced
conditionality or structural reforms, causing harm, not help to developing
countries.
- conditionality most directly comes from its Development Policy Operations,
where loans are issued after completion of prior actions
,Criticisms of the IMF Ans✓✓✓ - has been subject to a range of criticisms
generally focused on the conditions of its loans, lack of accountability, and
willingness to lend to countries with poor human rights records
- it can be said that the methods used by the IMF to decrease corruption,
decentralizing the government and privatization, actually *increase corruption*
- Assumption of corrupt government- biased and inconsistent policy decision-
making
- Privatization and deregulation
- Austerity policies
- Imbalance of power
- Impact on environment
Criticisms of the World Bank Ans✓✓✓ - an imbalance of leadership power,
enforced conditionality, and environmental impacts.
Debt Instruments Ans✓✓✓ - A tool used by a company or any other entity to
raise money or capital
Doha Round Ans✓✓✓ - followed the Uruguay Round
- focused on agricultural subsidies, intellectual property, and other issues.
, Ensure Non-discrimination (WTO) Ans✓✓✓ - Most-favored-nation (MFN) status
requires that a WTO member must apply the same terms and conditions to trade
with all other WTO members.
- if a country grants another country (even a non-WTO member) a special favor,
then every other WTO member must get the same treatment
Four Forms of Conditions/Policy Commitments Ans✓✓✓ 1) Prior actions are
actions that a country agrees to before the IMF's executive board approves
financing or completes a review. They are intended to verify that the country has
a stable financial foundation before qualifying for a loan.
2) Quantitative performance criteria are specific and measurable conditions that a
country must meet to complete a review.
3) Indicative targets are quantitative targets used to measure a country's progress
in meeting the IMF's requirements.
4) Structural benchmarks are non-quantitative measures such as social safety nets
General Agreement on Tariffs and Trade (GATT) Ans✓✓✓ - a 1948 agreement
that established an international forum for negotiating mutual reductions in trade
restrictions
- still exists as the WTO's umbrella treaty for trade in goods, but it is no longer the
only legally binding global-trade agreement
answers
AAA Rating Ans✓✓✓ - The highest possible rating that a credit rating agency may
assign for a bond
Assist Developing Nations (WTO Function) Ans✓✓✓ - Many developing countries
and emerging markets lack the experience and technical expertise needed to deal
with extensive and very comprehensive trade agreements.
- The WTO provides them with critical training and support, thereby ensuring that
the WTO is inclusive and equitable toward both the wealthiest and most
impoverished nations in the world
Balance of Payments Ans✓✓✓ - difference in total value between payments into
and out of the country over a period of time
Bretton Woods Institutions Ans✓✓✓ - twin intergovernmental pillars supporting
the structure of the world's economic and financial order
- IMF & The World Bank
Conditionality Criticism on the World Bank's Loans Ans✓✓✓ - enforced
conditionality or structural reforms, causing harm, not help to developing
countries.
- conditionality most directly comes from its Development Policy Operations,
where loans are issued after completion of prior actions
,Criticisms of the IMF Ans✓✓✓ - has been subject to a range of criticisms
generally focused on the conditions of its loans, lack of accountability, and
willingness to lend to countries with poor human rights records
- it can be said that the methods used by the IMF to decrease corruption,
decentralizing the government and privatization, actually *increase corruption*
- Assumption of corrupt government- biased and inconsistent policy decision-
making
- Privatization and deregulation
- Austerity policies
- Imbalance of power
- Impact on environment
Criticisms of the World Bank Ans✓✓✓ - an imbalance of leadership power,
enforced conditionality, and environmental impacts.
Debt Instruments Ans✓✓✓ - A tool used by a company or any other entity to
raise money or capital
Doha Round Ans✓✓✓ - followed the Uruguay Round
- focused on agricultural subsidies, intellectual property, and other issues.
, Ensure Non-discrimination (WTO) Ans✓✓✓ - Most-favored-nation (MFN) status
requires that a WTO member must apply the same terms and conditions to trade
with all other WTO members.
- if a country grants another country (even a non-WTO member) a special favor,
then every other WTO member must get the same treatment
Four Forms of Conditions/Policy Commitments Ans✓✓✓ 1) Prior actions are
actions that a country agrees to before the IMF's executive board approves
financing or completes a review. They are intended to verify that the country has
a stable financial foundation before qualifying for a loan.
2) Quantitative performance criteria are specific and measurable conditions that a
country must meet to complete a review.
3) Indicative targets are quantitative targets used to measure a country's progress
in meeting the IMF's requirements.
4) Structural benchmarks are non-quantitative measures such as social safety nets
General Agreement on Tariffs and Trade (GATT) Ans✓✓✓ - a 1948 agreement
that established an international forum for negotiating mutual reductions in trade
restrictions
- still exists as the WTO's umbrella treaty for trade in goods, but it is no longer the
only legally binding global-trade agreement
