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Functions of International Monetary Fund, World Bank, General Agreement on Tariffs and Trade and World Trade Organization

In: Business and Management

Submitted By hollowman3000
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Functions of the International Monetary Fund
The function of the Monetary Fund (IMF) is to provide loans to its members. It hereby uses different programs to supply a short, medium and long term solution. For entering, each member is charged a fee or quota. IMF main role is to intercede when there is an invitation, but also when a country can’t realize their international debts. The own currency of the IMF is the special drawing right (SDR). In order to provide fundamental changes in governmental relationships it though needs a borrower. That’s why its resources for dealing with crises are limited.

Functions of the World Bank
After World War II the original purpose of the World Bank was to assist helping the implementation of the Marshall plan - providing financing aid and programs to support the rebuilding of Europe. Soon its financials were insufficient. For these reasons it shifted towards backing up the development of nonindustrial countries and their economics.

Functions of the General Agreement on Tariffs and Trade
In the beginning there was the International Trade Organization (ITO) with its purpose to reduce tariffs. When it died in 1948, the General Agreement on Tariffs and Trade (GATT) has risen instead, focusing on bringing down trade barriers progressively. Therefore, countries will meet periodically and negotiate. It has been very successful thus far, but ignored the sectors of agriculture, textiles and apparel. One indicator given is “that international trade has grown over the last fifty years from 5 percent of world GDP to over 31 percent in 2011”.

Functions of the World Trade Organization
The main task of the World Trade Organization (WTO) is to encourage rounds of negotiations and to continue trade talks and sector-specific discussions between nations. They tried to emphasizing issues of developing countries, especially those with farm...

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