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.
Massachusetts Institute of Technology. (2000). The IMF and the World Bank: puppets of the neoliberalism onslaught. Retrieved April 05, 2014, from MIT website: http://www.mit.edu/~thistle/v13/2/imf.html
The first period of enlargement occurred following the adoption of several agreements and norms amongst the nations of Denmark, Ireland, and the United Kingdom in January of 1973 followed by Greece in January of 1981. The Inner Six nations had proliferated their agreements amongst each other to 4 other nations, bringing the total number ...
The European Union economic and political union is divided between twenty-eight European countries that united to preserve the economy, of the union. This form of economic preservation allowed “an organization spanning policy areas, from climate, environment, and health to external relations and security, justice and migration” (EU 2018). First, to build the European Union every country within the union avoided conflict by trading goods with one another. The act of courtesy in trade amongst the countries promoted peace and economic growth between the European countries (EU 2018).
The IMF plays a pivotal role in the international economy system. As its initial goal about reconstructs world’s international payment system, such as contributes to surveillance of the global economy, to stabilize exchange rates, to lend money to help countries to resolve emergency situation but with certain conditions and should pay back in a short time. The IMF has done a large number of things to help the world economy, not only in the western countries, but in many developing countries as well.
The European Union is a one of a kind economic and political partnership between 28 European countries that as stated in the title cover much of the European continent. According to the European Union’s website there purpose is to, “continue prosperity, freedom, communication and ease of travel and commerce for its citizens.” When it comes to advantages and disadvantages the European Union has more advantages. The EU eliminates an exchange rate which leads to greater competition, lower prices, and more international trade. European Union also has benefited its member countries by uniting them t...
The International Monetary Fund is to prevent economic problems from turning into global ones. If any country has issues, the IMF will offer loans and advice in, but of course this comes with a price. In exchange for money, they would want to change certain policies, in an attempt to stop...
I, like many people, have always heard about the International Monetary Fund in the news yet never really knew or understood its inner workings, this report over views what the International Monetary Fund is, how it works, and how it is currently involved internationally. The International Monetary Fund (IMF) is a form of world credit union that has 187 countries involved, a near global involvement. The International Monetary Fund’s was founded in the aftermath of World War II in 1945 along with the International Bank for Reconstruction and Development (IBRD) and the General Agreement on Tariffs and Trade (GATT) as an agency of the United Nations. The International Monetary Fund’s goal is to promote trade and exchange stability globally. The 187 members each pay a monetary amount to the International Monetary Fund based on their individual economic size, the current biggest contributor being the United States of America. Some major crises the IMF is involved in are aiding in rebuilding Haiti, the economic crash of Iceland and the financial problems in Greece.
the effect that the work of the IMF and the World Bank have had on the
The International Monetary Fund and the World Bank were created as a result of the Bretton Woods Conference. Both provide assistance to countries suffering economically. While the IMF is a cooperative institution that aims to create an organized global system of payments and receipts, the World Bank is an institution that aims to help developing countries (Driscoll 1). Both play a part in the economies of struggling nations with the goal of reducing their burden and helping them to survive in the global economic system. Unfortunately, in many cases their practices within developing nations have been seen to create more harm than good. This is possibly because both institutions use a one size fits all approach when aiding countries rather than gaining a deep understanding of each country they are involved in and catering their approach as a result. In this paper I will examine the practices of the IMF and World Bank in developing nations that have led to failure and the effects the policies had on these countries.
The International Monetary Fund (IMF) works to foster economic growth and economic stability, which is an association that mainly creates the stability in exchange rates and offers temporary loans for the state members in order to tackle their balance of payment problems. Beside, the members contribute their national currencies to the IMF pool for providing loans to deficit countries. In addition, the IMF article of agreement has emphasized that the members had to peg their currencies to gold or US dollars. The IMF utilizes its gold holdings to acquire dollars and other currencies for its operations. The capital of the IMF consists of the aggregate of the quotas allotted to the member countries member can pay its quota in its national currency. Therefore, the developed countries (DC) hold the significant powers in IMF.
It is important to refute the illusion early on that the IMF was truly international or independent body. It was, and is massively underfunded ant the result is that its directors have to ask the US treasury department for funds, giving the bosses of the treasury such as Robert Rubin and Larry Summers immense influence over the fund's policies. Therefore, while the fund essentially promoted policies of the American government, or the "Washington concensus", it was often used as a scapegoat. Whenever something was wrong, such as a crisis precipitating due to poor and not peer-accepted recommendations, as was the case in Asia in 1998, few blamed the department of the Treasury of the Clinton administration. Problems were attributed to the fund, which is labeled as international, and to such mysterious and ill-understood phenomena such as globalization.
The basic mission of IMF is to help and ensure stability in the international system. It does its job in three ways: keeping track of the global economy and the economies of member countries: lending to countries with balance of payments difficulties: and practical he...
The European Union (EU) is by far the most advanced form of cooperation between independent sovereign countries today. Despite the great diversity in culture of its member states, in its integration the EU has established characteristics of a single state; its own parliament, justice system and a single market with one currency. The Europeans are the first to create this model where countries give up a part of their sovereignty to gain other benefits, but it is my opinion that as time progresses, and given that the EU model will prove itself, we will see more countries in different parts of the world integrating and forming similar unions.
The other trend has been the dynamic enlargement of the European Union in four phases, with a fifth major extension occurring in 2004. The European Union now consisted of 28 members with Bulgaria and Romania being included in 2007. The primary phase of enlargement occurred in 1973, with the affirmation of England, Denmark, and Ireland to the European Union.
...ment and well-being. It is clear that without the ongoing presence and work of international organisations, the international system would be in a far worse and more chaotic state, with a far greater chance for a civil war to breakout. They also are a major player in helping develop states political and economical systems.