Does International Business Need International Financial Institutions, Such as the Imf, the World Bank and the Ebrd? Give Reasons to Support Your Views
Does International Business need International Financial Institutions, such as the IMF, the World Bank and the EBRD? Give reasons to support your views.
INTRODUCTION:
International Financial Institutions (IFIs) are the financial institutions that are formed by a number of countries, to help countries from going through global economic crisis or financial turmoil. These IFIs play a predominant role in ensuring that timely help is provided in the form of financial loans and, provide funding for government or private projects. Most importantly IFI’s such as World Bank and International Monetary Fund(IMF) help in providing better social and living conditions to the developing and undeveloped countries by providing long term funding, reducing global poverty and building economic infrastructure. These IFIs generally help in maintaining macroeconomic stability in the countries by providing financial advice and funding.
The recent globalisation and internationalisation of business has brought in equal number of problems as the benefits that it has reaped. However an important point made by many financial experts that all “global crisis” requires “global solutions” and hence proves the importance of international financial institutions and its role in international business environment.
The first International Financial Institutions were established as Bretton Woods Institutions that include World Bank and IMF, but due to rise in the growth of the international business environment, the need for more IFIs were required and consequently many IFIs were established such as EBRD, ADB etc which are formed based on specific objectives of their own framed agenda, most of these IFIs are multilateral development banks.
Importance of International Financial Institutions in International Business
The International Monetary Fund (IMF) is an in international financial institution that has been established in the year 1944, its primary function is to manage the global
INTRODUCTION:
International Financial Institutions (IFIs) are the financial institutions that are formed by a number of countries, to help countries from going through global economic crisis or financial turmoil. These IFIs play a predominant role in ensuring that timely help is provided in the form of financial loans and, provide funding for government or private projects. Most importantly IFI’s such as World Bank and International Monetary Fund(IMF) help in providing better social and living conditions to the developing and undeveloped countries by providing long term funding, reducing global poverty and building economic infrastructure. These IFIs generally help in maintaining macroeconomic stability in the countries by providing financial advice and funding.
The recent globalisation and internationalisation of business has brought in equal number of problems as the benefits that it has reaped. However an important point made by many financial experts that all “global crisis” requires “global solutions” and hence proves the importance of international financial institutions and its role in international business environment.
The first International Financial Institutions were established as Bretton Woods Institutions that include World Bank and IMF, but due to rise in the growth of the international business environment, the need for more IFIs were required and consequently many IFIs were established such as EBRD, ADB etc which are formed based on specific objectives of their own framed agenda, most of these IFIs are multilateral development banks.
Importance of International Financial Institutions in International Business
The International Monetary Fund (IMF) is an in international financial institution that has been established in the year 1944, its primary function is to manage the global
References: BBC NEWS (2010) Explained: the IMF and World Bank http://news.bbc.co.uk/1/hi/business/95218.stm(accessed on 17/0510) Euro Dad (2009) http://www.eurodad.org/whatsnew/reports.aspx?id=4083(accessed on 17/0510) Ghofrani, A (2009) The role of international financial institutions in development and resolving crises http://www.presstv.ir/detail.aspx?id=92537§ionid=3510304(accessed on 17/0510)