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Assi - Ib-Mbat-302
Assi - Ib-Mbat-302
ASSIGNMENT
ON
Vishwajeet S. Tekade
MBA-(General) Section – A
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INTERNATIONAL BUSINESS
WTO
(WORLD TRADE ORGANIZATION)
EVOLUTION:-
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INTERNATIONAL BUSINESS
critics contend that the benefits of WTO-facilitated free trade are not shared
equally, citing the outcomes of negotiations and data showing a continually
widening gap between rich and poor nations.
The WTO precursor General Agreement on Tariffs and Trade (GATT), was
established by a multilateral treaty of 23 countries in 1947 after World War II in
the wake of other new multilateral institutions dedicated to international economic
cooperation—such as the World Bank (founded 1944) and the International
Monetary Fund (founded 1944 or 1945). A comparable international institution for
trade, named the International Trade Organization never started as the U.S. and
other signatories did not ratify the establishment treaty, and so GATT slowly
became a de facto international organization.
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INTERNATIONAL BUSINESS
Objectives of WTO :-
The six key objectives of World Trade Organisation have been discussed below.
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INTERNATIONAL BUSINESS
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INTERNATIONAL BUSINESS
Functions of WTO:-
1. To implement rules and provisions related to trade policy review mechanism.
6. To assist international organizations such as, IMF and IBRD for establishing
coherence in Universal Economic Policy determination.
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INTERNATIONAL BUSINESS
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INTERNATIONAL BUSINESS
IBRD
(International Bank of Reconstruction and Development)
Evolution:-
The International Bank of Reconstruction and Development (IBRD) is one
of the two major institutions that make up the World Bank, with the other being
the International Development Association (IDA). The IDA is a financial
institution dedicated to making developmental loans to the world’s poorest
countries. The IBRD was founded in 1944 with the goal of helping war-torn
European countries rebuild their infrastructure and their economies.
Following the recovery from World War II, the International Bank of
Reconstruction and Development broadened its mandate to increasing global
economic growth and eliminating poverty. Today, the IBRD focuses its services
on middle-income countries or countries where the per capita income ranges from
$1,026 to $12,375 per year. The IBRD adjusts these and other figures a bit yearly
to account for inflation, economic changes within middle-income countries, and
other factors.
These countries, like Indonesia, India, and Thailand, are often home to fast-
growing economies that attract a lot of foreign investment and large infrastructure
building projects. At the same time, middle-income countries are home to 70% of
the world’s poor people, as the benefits of this economic growth are unevenly
distributed across their populations. The success of middle-income countries is
precarious, as many economies that look promising will collapse under the weight
of corruption and economic mismanagement.
The IBRD was founded in anticipation of the end of World War II, during
the Bretton Woods Conference of 1944, a gathering of the 44 Allied Nations of the Second
World War meant to establish the post-war global financial order. Along with establishing
a new global monetary policy regime, the Bretton Woods Conference was also where the
International Monetary Fund and the IBRD were formed. The first loan ever issued by
the International Bank Of Reconstruction and Development was to the government of
France, to help finance the reconstruction of critical infrastructure. Following the
reconstruction of Europe, the IBRD shifted its focus to promoting economic development
in other parts of the world.
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INTERNATIONAL BUSINESS
Objectives:-
1. To help in the reconstruction and development of member countries by
facilitating the investment of capital for the productive purposes, including the
restoration and reconstruction of economies devastated by war.
2. To encourage the development of productive resources in developing countries
by supplying them investment capital.
3. To promote private foreign investment through guarantees and participation in
loans and other investment made by private investors.
4. To supplement private foreign investments by direct loans out of its own capital
for productive purposes.
5. To promote long term balances growth of international trade and the
maintenance of equilibrium in the balance payments of member countries by
encouraging long term international investments.
6. To bring about an easy transition from a war economy to a peace time economy.
7. To help in raising productivity, the standard of living and the conditions of
labour in member countries.
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INTERNATIONAL BUSINESS
Functions:-
At Present, the World Bank is playing an important role in providing loans
for development works to member countries, especially to underdeveloped
countries. The bank provides loans for various development projects of 5 to 20
years duration.
2. Bank also provides loans to private investors belonging to the members on its
own guarantee, but private investors need to take permission of its native country.
Banks charge 1% to 2% as service charge.
3. The quantum of loan service, interest rate, terms and conditions are decided by
the World Bank itself.
4. Generally bank grant loans for a particular project duly submitted to the bank
by the member country.
5. The debtor nation has to repay either in reserve currencies or in the currencies in
which the loan was sanctioned.
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