BU360 Social Impact of Business

Global trade is carried out in the framework of a set of vital International Finance and Trade Institutions. The most important of these institutions are World Bank, International Monetary Fund, and World Trade Organizations. The World Bank is a very important foundation for monetary and technical support to developing countries around the world, according to its mission proviso. It is the biggest economic and financial improvement assistance contributor. The World Bank also offers to developed countries to broaden their economies, businesses, and technology to the credit-receiving nations, thus creating extra inroads to the acceleration of globalization. The International Monetary Fund (IMF), alternatively, is a sister organization to the World Bank. The IMF’s role in the acceleration of globalization is to uphold global financial solidity and monetary support. It makes easy the development of international trade, supports employment and sustainable economic growth, and facilitates the lessening of global poverty. The IMF also eliminates barriers to currency exchange among nations. When stability lacks in currency exchange, the principal currency nations become too dominant and foremost in the world marketplace. To this end, there is World Trade Organization (WTO) which is a dependable institute for running global trade concession and resolving trade disagreements among nations. It is a single global international organization dealing with rules of trade between countries. Its key purpose is to support and uphold free trade, eradicating blockades to trade among nations.

The World Bank has its headquarters in Washington, D.C., and was established in 1944. It has two objectives for the world to realize by 2030: End acute poverty and support collective affluence by promoting income growth of the least 40% for every nation. The World Bank may not be considered a bank, but a distinctive joint venture to lessen poverty and sustain development. The World Bank is a fundamental source of financial and technical support to developing nations around the globe, according to its mission stipulation. Its function in the acceleration of globalization is in its provision of economic development loans to its affiliate nations and assists in reconstructing war-torn economies. It grants developed nations the expansion of their economies, businesses, and technology hereby, making supplementary inroads to the acceleration of globalization. It is the largest trade and industry development assistance contributor to budding economies or developing nations. The World Bank assists its member nations to improve their admittance to developed nations’ markets and augment their contribution to the world economy. These markets are imperative to the acceleration of globalization since they force growth in the economy. The leaders of developing nations want to generate better value for the life of their people. Positive growing trade is fundamental to ending severe poverty and enhancing shared prosperity. Nations opened to international trade are liable to develop faster and make available more prospects to its populations. Numerous businesses in developing nations are reliant on World Bank and International Monetary Fund loans to continue existing.

The International Monetary Fund was established at the same time as the World Bank and is also located in Washington D.C. It was shaped to help reinstate, sustain, and promote global integration by encouraging international economic collaboration. The idea of the IMF is to ensure the exchange of currency is easier for member nations so it will enable them to partake in global trade. Its role in the acceleration of globalization is its promotion of international financial stability, firmness, and financial cooperation. It eases international trade, supports employment, and sustainable economic development. It also assists in the reduction of global poverty. The IMF as well eliminates barriers or blockades of currency exchange among nations and ensures easier transactions for member nations. Without barriers to elimination and stability in the exchange of currency, the chief currency nations can become too prevailing and dominant in the international market. The IMF ensures readily available loans to developing nations to assist them in building reliable infrastructures. They have a significant and noteworthy role as a gatekeeper for nations with low income. With IMF authorization, low-income nations easily are able to access developmental aid while lending both from international institutions and individual donor nations. Although the World Trade Organization steps in when these nations cannot pay back the loans to make sure a deal to trade their natural resources or important companies comes into place between nations willing to buy it off exist. By building and sustaining a stable and firm global exchange of currency system and interrelated policies, the IMF is accelerating globalization and the stream of global finance. In brief, the International Monetary Fund (IMF), and World Trade Organization (WTO) play a massive role in globalization.

The World Trade Organization (WTO) was established on January 1, 1995, as the world’s prominent institution that deals with trade controversy among nations. The WTO is accountable for running global trade concessions and resolving trade disputes between nations. The rules of trade between nations are dealt with solely by the WTO. Its key goal is to encourage free trade and eliminate barriers and blockades to trade among countries. It gives confidence to fair competition between nations and enhances trade liberalization to hasten economic development and globalization by evaluating trade policies, training member nations in the act of trade, and contributing to the creation of economic policies which are applicable to global and international trade. The WTO is exceptional in its system where it is more of an International Trade Institution (ITI) is different from an International Finance and Trade Institution (IFTI) since not like the World Bank and International Monetary Fund, it does not grant any money or currency-related support. It does not loan money or foreign exchange. The whole work, exertion, and idea of the WTO add extensive a way to accelerate globalization by encouraging open and fair international trading. Still, in its unique approach, it offers a considerable commitment and support towards accelerated globalization by setting the rules of engagement in global trading. The World Trade Organization (WTO) assists global trade runs efficiently, predictably, and liberally. It presents countries with a beneficial and fair passage for dealing with disagreement over trade issues.

Global commerce is played out in the framework of laid down important International Finance and Trade Institutions rules. The World Bank was established to offer financial and technical support to budding economies or rather developing nations. It assists its member nations to advance their right of entry to developed country markets and augment their participation in the global economy. The IMF and WTO play a massive role in globalization. With IMF authorization, nations with low income assess loans and financial support easily from international institutions and individual donor nations. When these nations cannot pay back as when due, they will need to sell either natural resources or important companies. In this situation, the WTO buys natural resources or important companies from them or fosters a trade relation between nations who are willing to buy. It is to this effect that a company like General Electric (USA) is able to operate in and from other countries. No business can function across national boundaries without meeting the terms set by the WTO.

Hence, these three institutions play a great role in the acceleration of globalization.

References

 Ahmed, F. (2015). Globalization: The Roles of the World Bank (WB), International Monetary Fund (IMF), and World Trade Organization (WTO). Retrieved from https://michaelahmed.net/2015/08/14/globalization-the-roles-of-the-world-bank-wb- international-monetary-fund-imf-and-world-trade-organization-wto/

Gonzalez, F. (2015). What roles do the IMF and the WTO Play in Globalization? Retrieved from https://prezi.com/y7ij36ewrrpe/what-roles-do-the-imf-and-the-wto-play-in-globalization/

Lawrence, A. T., & Weber, J. (2014). Business and Society – Stakeholders, Ethics, Public Policy, (14ed.). New York, NY: McGraw-Hill

Lawrence, A. T., & Weber, J. (2017). Business and Society – Stakeholders, Ethics, Public Policy, (15ed.). New York, NY: McGraw-Hill

Trade Overview. (2018). Retrieved from http://www.worldbank.org/en/ topic/trade/overview

What we do. (2018). Retrieved from http://www.worldbank.org/en/about/what-we-do

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BU360 Social Impact of Business

Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling, and grammar. Sources must be cited in APA format. Your response should be four (4) double‐spaced pages; refer to the “Format Requirementsʺ page for specific format requirements.

Describe the roles of the World Bank (WB), International Monetary Fund (IMF), and World Trade Organization (WTO) in the acceleration of globalization.

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