Answer to Question #265954 in Finance for Princess

Question

In your point of view discuss the contributions of the different financial and economic institution that facilitated the growth of the global economy in 3-4 paragraphs with 3-4 sentences per paragraph.

Answer 1

Globalization has brought closer economies of the world. When one economy grows, the rest of the world also has to grow.

The International Monetary Fund (IMF) and The World Bank

The two were designed to complement each other, and were founded after the world war II

They were established to advocate for peace after the war , and they aimed to help the economic stability of the world.

They were highly influenced by the richest countries who handled most of the financing.

However, due to lending the corrupt governments, or dictators who fail to give back the money effectively, their reputation has been dwindling.

North American Free Trade Agreement(NAFTA)

It is a trade pact between Mexico, Canada, and the US

it opened up opportunities in North America by creating about 5million jobs for small and medium sized businesses to create a name for themselves.

It quadrupled trade between these countries, and lowered prices by removing tariffs.

its development caused manufacturing jobs from developed nations (Canada and Us) to transfer to the lesser developed ones (MEXICO) thus reducing cost of their products.

The WTO

It is an independent multilateral organization that became responsible for non-tariff related barriers to trade and other broader parts of its liberalization.

it is based on the general idea of Neoliberalism which states that all nations will benefit when barriers are reduced or eliminated.

It has its headquarters in Geneva with 152 state members.