3.2A International organisations

• World trade =

  • The amount of world trade increased fairly slowly from the 1970s to the mid 1990s. 
  • There was a huge growth in export trade after 2002
  • A sharp dip in 2008-2009 due to the global recession / global financial crisis
• World bank =

  • Has the role of lending money and giving grants to the developing world to fund economic development and reduce poverty.
  • Requires recipients to adopt trade liberalisation policies and to open up to FDI by removing legal restrictions and capital controls
  • Deals with flow of capital
• IMF =

  • Aims to maintain a stable international financial system, and this promotes free trade and globalisation.
  • Recipients must adopt structural adjustment and trade liberalisation programmes, including measures opening up the economy to FDI and free trade.
• WTO =

  • International organisation that works to reduce trade barriers (both tariff and non-tariff) and create free trade.
  • Deals with the flow of goods and services (commodities), not specifically about FDI
• FDI = foreign direct investment which is the capital flow from country to another for the purpose of constructing physical capital.