Question

How did the international community try to address the topic of international trade after WWII? What were the purposes of the World Bank, IMF, GATT, and the WTO? How does globalization play a role in international relations and what are the positives and negatives of globalization?

Answer 1

Answer :- After the world war II international community wanted to increase trade between nations so that they established various organisation such as International monetary Fund ( IMF) , world trade organisation (WTO) , GATT.

International monetary Fund (IMF) is an international organisation of almost 189 countries which helps to stability of international monetary system. It was established in 1945 . Main aim of IMF is to promote and balance the trade between countries, promotes exchange stability. It also corrects the balance of payments problems of the countries.

World trade organisation (WTO) is an organisation of 164 countries which decide trade rules and regulations for the international trade that member countries have to follow . WTO helps to ensure smooth flow of trade between nations. It also provide nations fair outlet to deal with disputes over trade issues. WTO came into existence in 1995 after succeeding GATT that was established in 1947.General agreement of tariff and trade is a legal agreement between nations. Main purpose of international trade is to eliminate or reduce trade barriers, ( quotas, tariffs).

Purpose of GATT, world Bank, IMF and WTO is to boost international trade and payments between different nations . To increase economic growth , rising living standards and to reduce poverty around the world.

Globalisation play very crucial role in international relations as it increase the flow of communication as well as technology between people and corporation around the world . It also increase the environmental protection in the nation's . Helps to reduce cultural barrier and increase the trade. Spread democratic ideas around the world.

Positive effect of globalisation :-

* Exchange of ideas, experience, culture and lifestyle. Now people can have food and products which were not available earlier.

*Globalisation may helped people around the world aware of deforestation, global warming and alert them to choose sustainable development.

* provided many job opportunities to local people.

* Brings foreign currencies and wealth which can be put to develop infrastructure, schools, hospitals etc

Negative effect of globalisation :-

* Globalisation mostly works in the interest of developed nations that dominates in world trade at the expense of developing nations.

* Sometimes there is no guarantee that it will benefit local communities as most of the profit is sent back to foreign nations . It may drive local businesses out of market.

* In absence of strict international trade law . Factories or industries may pollute the environment, might make workers working in poor working condition, low wages to local people.