Q-1. “The IMF is often seen as the lender of last resort to nation-states, whose economies are in turmoil and whose currencies are losing value against those of another nations”
From the above mentioned context, elaborate the role of IMF” In providing loans to the troubled economies.
Q-2.”Explain the Term Globalization” and discuss the drivers of globalization.
Q-3. Discuss the role of international institutions in the global business landscape.
1.
IMF plays an important role in providing loans and financial assistance to the troubled economy and it is one of the most important functions of IMF as an international institution. In its role, IMF acts as a facilitator to provide loans, and at the same time, IMF brings detailed guidelines and conditions to be followed by the troubled economies so that these economies recover quickly and as per the plan. It involves the supervision of the structural reforms in these economies and focus upon government's own austerity measures so that funds are used properly and give desired boost to the economy. Besides, IMF also puts huge stress upon liberalization of economies and trade with the rest of the world. For this, regulatory reforms also done under the supervision of IMF. On the basis of these developments, IMF releases funds to these economies and as per its own guidelines and view of the participating nations. So, IMF becomes the supervisor in a role that involves providing loans to these troubled economies.
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2.
Globalization refers to the facilitation of integration of different economies and development of international trade among these economies. It is the globalization that makes excess demand in one country to be catered by the excess supply of another country. It has helped the world economy to expand and grow with opportunities for everyone.
There are many drivers for the globalization. The first driver for globalization is the common culture, trends and practices in the geographical area. It leads to the geographical integration and globalization takes place. For example, the formation of European Union is the step towards globalization. The second driver is the propensity among the nations to cater the market of each other. It makes nations to come together and form agreements and trade with each other. It is the basis of NAFTA and many other regional trade agreements. The third driver is the presence of world organizations that create platform where nations can interact and facilitate the trade. For example, it is WTO, providing a platform to discuss international trade. The fourth driver is common international problems that make nations to join hands and raise the concerns jointly. In the backdrop, it facilitates international trade between these nations.
So, above are some of the drivers of globalization.
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PL. repost other unanswered questions for their proper answers!
Q-1. “The IMF is often seen as the lender of last resort to nation-states, whose economies...
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