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joeydaprof
Jun 12, 2006

Role of International organisations in the global economy
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Explain the role in the global economy of International organisations

Globalisation is the actual movement or potential to move across borders of nations in areas of trade, investment, technology, finance and labour. It has resulted in increasing financial flows and trade between countries, as each country tries to establish itself into the gobal economy, and gaining the benefits associated with gobalisation. This has resulted in the formation of numerous International organisations that aim at promoting policy coordination amongst countries and attempt to provide rules and investment transactions and a forum for discussion of trade related issues. Such international organisations are, the World Trade Organisation (WTO), International Monetary Fund (IMF), The World Bank, Organisation for economic cooperation and development (OECD), Organisation of Petroleum Exporting Countries (OPEC), and the Group Seven (G7).

The WTO is the main multilateral trading agreement which provides a forum for countries to promote free trade and resolve trade disputes. Its various roles include enforcing the existing WTO agreement, resolving disputes, and liberalising world trade by implementing global trade agreements. These agreements lay ground rules, that promote cooperation between countries. The WTO also exists in order to provide non-discrimination between member countries, liberalisation of trade which involves the removal of all tariff and non-tariff barriers, stability of trading relations where WTO mechanisms are set up to discuss and solve trade disputes between countries, and Transparancy of trade agreements, where trade preferences between countries are scrutinised and discussed in the WTO forum thereby reducing corruption. Without the WTO,...