IMF’s Lagarde Says Protectionism Is Clearly a Threat

The video discusses the threat of protectionism to economic growth and productivity, highlighting the importance of open and fair trade. It identifies three main global economic risks: protectionism, political uncertainty, and capital flow shifts due to interest rate changes. The potential impact of US trade policy under the Trump administration is analyzed, emphasizing the need for unrestricted trade to foster growth and innovation. The video also addresses concerns about labeling China a currency manipulator, advocating for a cohesive global assessment of currency values.

What are the potential consequences of protectionist measures on the economy?

• Increased innovation and trade

• Improved allocation of resources

• Enhanced growth and productivity

• Reduced growth and investment

Which of the following is NOT listed as a major risk to the global economy?

• Protectionism

• Political uncertainty in Europe

• Technological advancements

• Capital flow shifts due to a stronger dollar

How might the Trump administration's trade policies differ from initial fears?

• By ignoring global trade agreements

• By being more protectionist

• By being less protectionist

• By focusing solely on domestic trade

What is emphasized as a crucial element for achieving better growth and productivity?

• Restrictive trade policies

• Open and fair trade

• Currency manipulation

• Political isolation

Why is it important to assess currency values on a global basis?

• To focus on a single country's economy

• To isolate economic impacts

• To ensure a zero-sum game in currency valuation

• To promote currency manipulation