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Agencies That Facilitate International Flows: International Monetary Fund (IMF)

The document summarizes several international agencies that facilitate global economic flows: The IMF encourages international business and reduces export instability through financial assistance and surveillance. The World Bank makes loans to enhance economic development and long-term growth, especially through structural adjustment loans. The WTO provides a forum for trade negotiations and disputes related to the GATT accord.

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Muhammad Usman
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256 views6 pages

Agencies That Facilitate International Flows: International Monetary Fund (IMF)

The document summarizes several international agencies that facilitate global economic flows: The IMF encourages international business and reduces export instability through financial assistance and surveillance. The World Bank makes loans to enhance economic development and long-term growth, especially through structural adjustment loans. The WTO provides a forum for trade negotiations and disputes related to the GATT accord.

Uploaded by

Muhammad Usman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Agencies that Facilitate

International Flows
• International Monetary Fund (IMF)
¤ The IMF encourages internationalization of
businesses through surveillance, and
financial and technical assistance.
¤ Its compensatory financing facility
attempts to reduce the impact of export
instability on country economies.
¤ The IM F adopts a quota system, and its
financing is measured in special drawing
rights (SDRs).
2- 1
Note

• See next Recording for further recorded


lecture.

2- 2
Agencies that Facilitate
International Flows
• World Bank
¤ This International Bank for Reconstruction
and Development makes loans to countries
to enhance their economic development.
¤ In particular, its Structural Adjustment Loans
(SALs) are intended to enhance a country’s
long-term economic growth.
¤ Funds are spread through cofinancing
agreements with official aid agencies, export
credit agencies, and commercial banks.
2- 3
Agencies that Facilitate
International Flows
• Multilateral Investment Guarantee Agency
¤ Established by the World Bank, the MIGA
helps develop international trade and
investment by offering various forms of
political risk insurance.
• International Development Association
¤ The IDA extends loans at low interest
rates to poor nations that cannot qualify for
loans from the World Bank.

2- 4
Agencies that Facilitate
International Flows
• World Trade Organization
¤ The WTO was established to provide a
forum for multilateral trade negotiations
and to settle trade disputes related to the
GATT accord.
• International Financial Corporation
¤ The IFC promotes private enterprise within
countries through loan provisions and
stock purchases.

2- 5
Agencies that Facilitate
International Flows
• Bank for International Settlements
¤ The BIS is the “central banks’ central
bank” and “lender of last resort.”
• Regional development agencies
¤ Inter-American Development Bank
¤ Asian Development Bank
¤ African Development Bank
¤ European Bank for Reconstruction and
Development.
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