Scribd
Upload
51 views2 pages

Globalization 2

The WTO was established in 1995 to replace GATT and serves as a forum for negotiating trade agreements and resolving disputes. It aims to promote open and transparent global trade. Pakistan has been a WTO member since 1995. The IMF was created in 1945 and aims to promote global growth, trade, and reduce poverty. It provides loans to countries experiencing economic distress and collects economic data. IMF conditions on loans help countries resolve payment issues without undermining prosperity and protect IMF resources by ensuring loans can be repaid. Member countries are responsible for selecting policies to successfully complete IMF programs.

Uploaded by

izza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
51 views2 pages

Globalization 2

The WTO was established in 1995 to replace GATT and serves as a forum for negotiating trade agreements and resolving disputes. It aims to promote open and transparent global trade. Pakistan has been a WTO member since 1995. The IMF was created in 1945 and aims to promote global growth, trade, and reduce poverty. It provides loans to countries experiencing economic distress and collects economic data. IMF conditions on loans help countries resolve payment issues without undermining prosperity and protect IMF resources by ensuring loans can be repaid. Member countries are responsible for selecting policies to successfully complete IMF programs.

Uploaded by

izza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

IZZA TANVEER

01-114201-006
Globalization
WTO
It was established on January 1, 1995, succeeding the General Agreement on Tariffs
and Trade (GATT), which had been in operation since 1947. The WTO serves as a
forum for member countries to negotiate trade agreements, resolve trade disputes, and
oversee international trade regulations. It plays a crucial role in promoting and
regulating global trade, with the overarching aim of fostering an open, transparent, and
rules-based international trading system.
Since its inception in 1995, the WTO has grown from 123 to 164 members.
Pakistan has been a WTO member since 1 January 1995 and a member of GATT since
30 July 1948.
Functions of the WTO:
The World Trade Organization serves several critical functions to facilitate international
trade:
Administering Trade Agreements: These agreements provide the legal framework for
international trade, ensuring predictability and stability in global commerce.
Forum for Trade Negotiations: These negotiations cover a wide range of trade-related
issues, from tariff reductions to trade in services and agriculture.
Settling Trade Disputes: The WTO provides a mechanism for resolving trade disputes
between member countries. The Dispute Settlement Body (DSB) ensures that disputes
are addressed through a rules-based process, helping to prevent trade conflicts from
escalating into full-blown trade wars.
Reviewing National Trade Policies: These reviews enhance transparency and
promote an understanding of each nation's trade practices.
Building Trade Capacity for Developing Economies: The WTO offers technical
assistance and capacity-building programs to support developing countries in
participating effectively in international trade. This assistance helps developing nations
address trade challenges and bolster their economic development.
IMF:

The IMF's mission is to promote global economic growth and financial stability,
encourage international trade, and reduce poverty around the world. The IMF was
originally created in 1945 as part of the Bretton Woods agreement, which attempted to
encourage international financial cooperation by introducing a system of convertible
currencies at fixed exchange rates. The IMF collects massive amounts of data on
national economies, international trade, and the global economy in aggregate and
provides economic forecasts. One of the IMF's most important functions is to make
loans to countries that are experiencing economic distress to prevent or mitigate
financial crises.

Conditions:

Conditionality helps countries resolve balance of payments problems without resorting


to measures that undermine domestic or international prosperity. Additionally, the
measure aims to protect IMF resources by ensuring that the country's finances are
strong enough to repay loans and making funds available to other countries if needed in
the future. Conditions are included in the IMF's lending and non-lending programs with
the aim of making progress towards agreed policy objective

Member countries that borrow money from the IMF have the primary responsibility for
selecting, designing, and implementing policies for successful economic programs. The
program is set out in a memorandum of understanding, which typically includes an
economic and financial policy memorandum that explains the policy in more detail.
Program objectives and policies vary depending on national context.

When a country borrows from the IMF, the government agrees to adjust its economic
policies to overcome the problems that led it to seek financial assistance. These policy
adjustments are conditions for IMF loans and help to ensure that the country adopts
strong and effective policies.

You might also like