3.5

• How do IGOs like the World Bank, IMF, WTO, and WEF influence global capitalism?

  These IGOs promote capitalism and free trade globally. After WWII, US fear of communist expansion led to policies influenced by modernisation theory. This helped establish institutions like the IMF and World Bank, which work to reduce poverty and promote capitalist structures in developing countries, often by attaching conditions to financial aid.
• What is the role of the World Economic Forum (WEF)?

  Founded in 1971, the WEF is a Swiss non-profit that hosts an annual meeting in Davos where political, business, and civil society leaders discuss global issues. It promotes international cooperation and encourages governments and businesses to work together on problems like corruption, terrorism, and economic inequality.
• How does the International Monetary Fund (IMF) work to stabilise the global economy?

  The IMF was created in 1944 to ensure currency stability and support capitalism. It provides loans to developing nations, often through Structural Adjustment Programs (SAPs) that require reforms promoting free markets. However, power is concentrated, with eight countries controlling nearly half the votes.
• What is the purpose of the World Bank and how does it operate?

  Also founded in 1944, the World Bank offers development loans to reduce poverty and support sustainable goals. It finances infrastructure, disaster relief, and humanitarian aid. The USA had significant voting power (16.5% in 2016), giving it major influence over decisions.
• What role does the World Trade Organization (WTO) play in the global economy?

  The WTO regulates global trade rules and encourages the reduction of trade barriers through free-trade agreements. It promotes poverty reduction by suggesting policies like removing farm subsidies, though this can harm local farmers in developing nations by making them less competitive against cheap imports.
• How have TNCs evolved into major global players?

  While TNCs like the East India Company date back centuries, modern TNCs have expanded significantly in recent decades. In 2006, six of the top ten were American, but by 2015 that number dropped to three, reflecting China’s rising influence. Today’s top TNCs include Walmart, Amazon, Apple, and Chinese firms like State Grid. Most TNCs are profit-driven and publicly owned, but some—especially Chinese ones—are state-led and return profits to the government
• What impact do TNCs have on global trade?

  TNCs have dramatically shaped trade by driving the global shift in manufacturing to developing countries. This has empowered emerging economies and made TNCs incredibly influential. A large portion of modern global trade is intra-company, meaning it's between different parts of the same multinational corporation.
• How do TNCs benefit from intellectual property laws like TRIPS?

  The TRIPS agreement (1995) requires WTO members to protect patents and intellectual property. This benefits TNCs by safeguarding investments in innovation, especially in pharmaceuticals. However, it also creates inequality, as expensive patented treatments (e.g., HIV meds) are often unaffordable for poorer nations.
• How do TNCs contribute to global cultural influence?

  Western TNCs spread Western culture worldwide. Shows like The Simpsons are available globally, reinforcing cultural dominance. Similarly, international food options in places like UK supermarkets reflect the globalisation of cuisine and consumer habits driven by powerful global brands.