Multilateral Trading System and Economic Integrations

World Bank is a group composed of five associated institutions: The International Bank for Reconstruction and Development, The International Development Association, The International Finance Cooperation, The Multilateral Investment Guarantee Agency and The International Center for Settlement of Investment Disputes.

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(1) Surveillance: The IMF monitors the economic policies of the member countries so as to maintain stability and avoid crises within the international monetary system. The IMF also gives policy assistance to member countries and promotes economic policies that would enhance economic stability, strengthen the economy for the negative effects of economic and financial crises and increase standard of living. (2) Financial assistance: One of the main responsibilities of the IMF is to give financial assistance to the member countries facing balance of payments problems. Member countries that have balance of payment deficits or surpluses prepare adjustment programs through close cooperation with the IMF. The IMF provides financial assistance upon the implementation of the adjustment program. In other words, financial assistance is subject to the implementation of the adjustment program designed in collaboration with the IMF. (3) Capacity development: The other main mission of the IMF is to assure technical assistance and training to support member countries to construct stronger and more efficient economic institutions and human capacity. Establishing more vigorous policies for taxation, monetary and exchange rate policies, supervision and regulation of banking and financial institutions, legislative systems, statistics and reporting.

Countries usually need financial and technical support at the times of economic crises to overcome balance of payments problems. In these circumstances, the IMF provides support upon a Standby Arrangement subject to the policies of the IMF. Standby Arrangements are mostly used for the middle income or advanced countries since lower income countries can be supported by the concessional instruments that are designed upon their special needs.

It is the framework that defines the main engagement areas of the World Bank Group in Turkey.

In the Bretton Woods monetary system, countries settled their international balances in US dollars and the US dollar was convertible to gold at a fixed exchange rate, referring to 35 US dollars to 1 ounce gold. Thus, the convertibility of the national currencies and gold was achieved. It was the responsibility of the US to keep the price of gold fixed. The US was also responsible to manage the supply of dollar in order to maintain this adjustable fixed exchange rate system.

They are the platforms in which the member countries come together and negotiate to reduce trade restrictions and take decisions on the multilateral trading system.

It was instituted under the auspices of the United Nations Conference on Trade and Development (UNCTAD) in 1971. The GSP has been contributing to create a facilitating and encouraging trading environment for the least developed and developing countries for years. Today, there are thirteen countries that grant preferential access to their markets via implementing the GSP. These countries are Australia, Belarus, Canada, European Union, Iceland, Japan, Kazakhistan, New Zealand, Norway, Russia, Switzerland, Turkey and the US.

It represents the tariff ceiling that is committed. Once a tariff is bound, it cannot be increased over its ceiling.

Dumping happens when a commodity is sold at a price less than its normal value at the foreign market. In other words, there is dumping when a commodity is exported with a price that is lower than its production cost.

Subsidies are usually classified under two groups: Export subsidies and domestic subsidies. Export subsidies are subsidies that are given to an exporting firm by the government. Domestic subsidies do not require a contingency on exportation.

A country exposed to dumping can charge an anti-dumping duty from the exporter country in order to compensate its loss.

A country that is exposed to an export subsidy can charge a countervailing duty from the exporter country in order to compensate its loss.

It is a term that refers to the excessive bureaucratic requirements and implementations of the countries.

It is the second goal of the United Nations Sustainable Development Goals: In order to end hunger, food security has to be achieved, nutrition has to be improved and sustainable agriculture has to be promoted in order to end hunger.

They are the rights that are given to people for the creations or innovations of their minds.

It is the re-direction of imports from the free trade area member country that implements higher import tariff or equivalent trade restriction to the member country that implements lower import tariff or equivalent trade restriction so as to exploit trade restriction differentiation.

It occurs when traded commodity is shifted from the lowest cost country that is out of the customs union (third country) to the relatively higher cost customs union member country.