The Relationship Between the IMF and World Bank, Questions and Answers

1. Where does the IMF get its money from?

The IMF gets its money from the member of countries and by their payment of quotas.

2. Does the IMF help the poor countries? If so, how?

The IMF helps and supports the poor countries by changing nature of economic circumstances and prevents the major economic disasters in poor countries. It also helps to eliminate the weakness of a country due to global economic crisis.

3. Why was the IMF formed in the first place?

The IMF promotes worldwide economic stability and monetary association. It encourages international trade, promotes high employment and comfort economic development and reduce poverty around the world.

4. What is the relationship between the IMF and World Bank? Do we need them both? Explain.

The IMF and World Bank have the same goal to share to raise the standard of living in their member countries. IMF focuses on macroeconomic problems and the World Bank focuses on long-term economic growth and poverty reduction. However, both IMF and World Bank are very essential in order to improve economic growth of a country as well as a better place for people to call it home.

WTO

1. What are the principles of the WTO?

There are five principles of the WTO, trade without discrimination, freer, predictable, competitive and beneficial for less developed countries. The most-favored-nation is treating other people equally. Under the agreements of WTO, trading partner are not usually separated within their nations. It allows an individual a special favor like offering them a product of low rate customs duty and same favor should be offered for all the other WTO members. National treatment is treating foreign and locals equally. Imported and manufactured products must be treated the ...

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... what has been its development?

The European Union was formed by six countries and the members of these states were the first of the European Union and the first to create the European free trade organization. Later, Suez crisis types of events lead to expand the Union by inviting seven other countries. The Union then started to expand and planned to invite ten more countries to join the European Union and there are 27 different countries in the European Union.

4. Have any other geographical economic union sprung up since in other parts of the world? If so, explain?

The Union state has sprung up since the creation of the European Union. The Union state has geographically increased to incorporate seven more countries. The reason behind this was to grow common policies on product regulation, freedom of movement of products and factors and external trade policies.