Question

1. Discuss some of the ways in which the global economy became intertwined in the late twentieth century, including the European Union, the International Monetary Fund, the World Bank, and NAFTA:

Answer 1

GLOBALISATION

GLOBALISATION refers to the process bu which technological ,economic,political,and cultural exchange make the world a more integrated one.Now the countries are ineterconnected and interdependent.It accelerated its speed in the 1990s and contributed the emergence a new economisc system.I n the bussines word the people are able to connect from the distant places,there by facilitating the exchange of culture,knowledge and ideas.

It is icluded the trade ,export,import,labour migration,flow of capital,,flow of technology, and many more contributions.In the later parts of 20th centuary, the growth of globalisation accelerating its speed. Even though there are some barriers ,trade and investment increased .Technology is now a basic fundamental for globalisation. Some free trade agreements were signed like NorthAmerican Free Trade Agreement (NAFTA) in 1992.Open market lead to some times job losses in some sectors.

IMF

The INTER NATIONAL MONETARY FUND an the WORLD BANK were both created at an international conference convened in Bretton Woods, New Hampshire, united states in July 1944. The goal of the conference was to establish a framework for economic cooperation and development that would lead to a more stable and properous global economy. While this goal remain central to both institutions, their work is constantly evolving in response to new economic development. It promotes medium term loans and provides policy advice to build a strong economy.

THE WORLD BANK

The world bank is the apex financial organisation which provides long tern loans It will give technical and financial support to all the countries and help in many projectsIts generally in long term. The IMF and WB contribute at higher level . The Governors discuss on the current issues and issue the financial support.

The IMF and WB works with the support of the WTO as the collaboration was very important to the world. The world is increasingly interconnected because of globalisation..

EU

European Trade policy is the more powrful one in bilateral agreement and negotiations and multi national bodies.The European Prliament decides on trade and investment with the council ,which represents the member state .We can say that the EU is the largest player in the international trade. .It can fund the fragile economies and provide loans upto 60% to the labour policies ,support for employment generation and help in job seeking .

NAFTA

The NORTH AMERICAN TRADE AGREEMENT is still extreeme in its importance.It recommends the countries for pursue equivalence of their respective sanitary and phytosanitary standards. It improoves the agreements and avoid the trade barriers .Its standards are based on the scientific principles.It protects the export and impport policies'

Many developed countries already taken advantage of the economical progress. The WB ,IMF and EU are playing the major role in building astrong nation . There is a great and open transparent organisation, economic cooperation. it provides the integrity of the international financial system. These organisations increasing the true national ownership of reforms to safeguard the international economy.