Question

Research each of the following international organizations and answer the questions. Copy and paste the question and provide your answer beneath. You should write in complete sentences and paragraphs, citing your sources properly.

IMF

1. Where does the IMF get its money from?
2. Does the IMF help poor countries? If so, how?
3. Why was the IMF formed in the first place?
4. What is the relationship between the IMF and the World Bank? Do we need them both? Explain.

WTO

1. What are the principles of the WTO?
2. When was it formed?
3. Why was it formed?
4. Compare and contrast the WTO and NAFTA. List 2 differences and 2 similarities.

EU

1. How did the European Union originate?
2. What is the Common Agricultural Policy? How is it governed?
3. Did all the members join at once? If not, what has been
   its development?
4. Have any other geographical economic unions sprung up since in other parts of the world? If so, explain?

Analysis:

For each of the 3 organizations, find a current event news item and provide a brief description and analysis of the story in terms of the impact in international business.

Answer 1

The international monetary fund IMF promotes international financial stability and monetary cooperation.

The IMF gets its money from quota subscriptions paid by member states. Each government pays according to the size of it's economy.

IMF provides financing and also policy advise to its members. IMF also helps the developing Nations to stabilize their economy and reduce poverty.

The IMF was formed to ensure the stability of international monetary system and to avoid the competitive currency devaluations that contributed to the great depression of the 1930s

The relationship between IMF and the world bank is complementary. We need both these institutions. The approaches of the IMF and the world bank complements each other with the IMF working for macroeconomic issues and the world bank on long term economic development and poverty reduction.

In a recent news item the IMF has said that the policy moves of the US president will not achieve the desired results.

The IMF is of the view that the US tarrifs on China will not fix the trade deficit. And weakening of the dollar through interest rate cuts will a also be counterproductive.

The world trade organization is a government organization. It is concerned with the international trade between Nations. Five principals are of particular importa

Non discrimination: it has two components , the most favoured Nation (MFN) rule. And the National treatment policy.

Reciprocity: It means both a desire to limit the scope of free riding that may arise because of the MFN rule and a desire to obtain a better access to foreign markets.

Binding and enforceable committments: A country can only change its bindings after discussing it with the trade partners.

Transparency: The WTO members are required to publish their trade related data.

Safety Values : WTO members are permitted to protect environment, animal,plant and people's health.

The WTO was officially commenced on 1 January 1995.

It's purpose is reduction of tarrifs and other barriers to trade.

North American free trade agreement NAFTA are both trade related entities. Both of these are considered most powerful in trade related matters.

WTO caters to the whole globe, NAFTA is only concerned with the North American region. NAFTA deals with the trade disputes , WTO has wider role. WTO is also a place where disputes between member countries are settled.

The current news is that the online registrations for public forum are closing soon. Must be completed by 16 September of the current year.

The European Union is a political and economic union of 28 member states.

It was established when the Maastricht treaty came into force in 1993.

The common agricultural policy of the European Union implents a system of agricultural subsidies.

Initially the six core states formed the European Union, rest of the members joined in the subsequent enlargements. Now 28 member countries are there.

There are various other unions like African union and union of soutS American Nations.

European Union is set to overturn bannon baby elephants being sent to the foreign zoo.

This will overturn the recent decision of 46 Nations.