Question

What are the roles of the IMF and the WTO in encouraging, monitoring, and regulating international trade? Do you agree or disagree with the roles? Explain your answer. (essay question)

Answer 1

The role of the IMF in encouraging, monitoring, and regulating international trade is as follows:

Its main goal is to help maintain financial stability in the global market system. In order to do so, it performs the below mentioned duties:
Firstly, it constantly keeps surveillance of the global monetary system and monitors the economic policies of its member countries. It also collects and analyzes the economic development parameters of the member countries and provides them with macroeconomic and financial policy advice as and when it deems necessary.
Secondly, it provides financial assistance to the underdeveloped and stressed economies of the world in order to ensure macroeconomic stability.
Lastly, the IMF provides guidance and training on macroeconomic, financial, and structural policies to low-income countries so that they can reduce poverty and achieve economic growth.

The role of the WTO in encouraging, monitoring, and regulating international trade is to formulate a set of standard rules to carry out global trades. This ensures that global trading takes place in a stable environment. These rules and regulations by the WTO ensure that all its member countries can trade in a free market without any trade barriers imposed. The WTO also arbitrates conflicts between member nations involved in the trade.

Yes, I agree with the roles of the IMF and WTO in encouraging, monitoring, and regulating international trade. Both the IMF and WTO have played an instrumental role in bringing about global macro-economic stability. It has also ensured that developing nations and emerging economies are given a level playing field in the global market and not be dominated by rich and developed nations.