Questions:

Tell something about WTO

What is the role of the Trade Block ?

What is the role of World Bank and IMF ?

READINGS:

Topic ; WTO

World trade organization which was founded on January 1,1995, not only plays the role of regulating international trade and commerce abut also plays a vital role in maintaining peace and harmony among the nations.

No country can fully flourish on its own, in the era of globalization, no longer is one limited to the boundary of his nation alone.trade ,people, culture are moving beyond one's nation. hence formation of an organization which would overlook smooth transition of trade among nations became inevitable. headquartered in Geneva, Switzerland, with 164 member states The World Trade Organizations is the only Global international organization dealing with rules of trade between nations nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the Worlds trading nations and ratified in their parliaments.

though the objective today is not limited to commerce alone, yet the primary ones are to set and enforce the rules for international trade, at the same time provide forum for negotiating trade disputes too. they also ensure that transparency is maintained in the decision making process.while cooperating with major international economic institutions involved in global economic management their agenda here is to help developing countries benefit fully from the global trading system.

while handling world trade their functions include trade negotiations, administering WTO trade agreements, cooperating with other international organizations and technical assistance and training for developing countries.

as mentioned earlier today world trade organizations role is not just relevant to the international trade but goes beyond that. this system helps promote peace, as they ensure transparent and fair dispute resolution. smooth international trade gives consumers more choice and range of goods to choose from, which in turn stimulates economic growth and employment. developing countries are given certain advantages to bring them at par with other nations.

Topic; Trade Block

Trade blocks can be defined as a group of countries existing within a geographical region coming together with a motive to protect themselves from the import and export of non members. a form of economic integration increasingly shaping the course of international trade. in other words they are intergovernmental associations that manage and promote trade activities for a specific regions of the world. they may also have political implication as we can see with the world's largest trade block the European union.

objectives of such blocks in not limited to trade alone as they also emphasize on improving social,political, economic and cultural relations among member nations. it removes trade restrictions among member nations and promotes economic growth, while establishing collective bargaining power in the international trade scenario it also encourages free transfer of resources among member nations.

there are different trade blocks and they can have different objectives. they are Preferential trade Area in which the agenda is to lower the trade barriers but not entirely eliminate it. Free trade areas are the ones which eliminate internal trade barriers but maintain independent external barriers for E.g NAFTA(north American free trade area). custom unions are those which eliminate internal barriers while agreeing on common external barriers. E.g Turkey with EU. finally the common market where internal trade barriers are eliminated with common external barriers allowing free movement of resources E.g labor.

Topic; world Bank and IMF

The World Bank works with growing nations to reduce poverty and growth shared prosperity, even as the International Monetary Fund serves to stabilize the international machine and acts as a monitor of the world's currencies. The World Bank Group is one of the world's largest assets of funding and knowledge for developing countries. Together, IBRD and IDA form the World Bank, which provides financing, policy recommendation, and technical assistance to governments of developing international locations. The IMF keeps music of the economic system globally and in member international locations, lends to international locations with stability of payments difficulties, and gives practical help to members.. The IMF's primary motive is to make sure the steadiness of the international monetary system - the system of trade fees and international payments that permits countries and their citizens to transact with every other. It does so by retaining track of the global economic system and the economies of member countries, lending to countries with balance of payments difficulties, and giving practical help to members. The IMF promotes international economic cooperation and affords policy recommendation and capability improvement assist to help international locations construct and keep sturdy economies. The IMF also offers medium-time period loans and enables international locations layout policy applications to solve stability of payments issues when enough financing can't be obtained to meet internet international bills.

Difference

World Bank

-       promotes long-term economic development and poverty reduction

-       providing technical and financial support to help countries reform certain sectors or implement specific projects such as building schools and health centers, providing water and electricity, fighting disease, and protecting the environment.

-       provides technical assistance, political risk insurance, and settlement of disputes to private enterprises, including financial institutions.

International Monetary Fund

-       promotes international monetary cooperation and provides policy advice and capacity development support to help countries build and maintain strong economies.

-       provides medium-term loans and helps countries design policy programs to solve balance of payments problems

-       IMF loans are short and medium-term and funded mainly by the pool of quota contributions that its members provide

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