7.4A Influences on the global economy

• • Much of the influence of superpowers and emerging superpowers is through International Governmental Organisations (IGOs)
  • These promote:
  • Free trade
  • Capitalism
• World bank = It is an international organisation that provides finance, advice, and research to developing nations to aid their economic advancement

  • Funded from wealthy nations and interest from loans
  • It acts to reduce poverty by increasing economic growth
  • It deals mostly with internal investment (development assistance) projects such as building dams, and infrastructure and promoting health and education in developing and emerging countries 
• WTO = aims to reduce barriers and promote free trade between countries whilst ensuring that trading nations keep to the agreed international trade rules through sanctions

  • ensure that producers of goods and services, along with exporters and importers, are protected and help manage their businesses
  • been a force for globalization, with both positive and negative effects
  • Have to open up borders to FDI
• IMF = bring financial stability to the world after World War II and avoid repeating the currency devaluation that contributed to the 1930s Great Depression

  • main aim is to allow the currency to be exchanged freely and easily between 190 global member countries
  • Funded by a quota subsciption
  • Member states pay according to the size of their economy; with voting rights based on quotas
• World economic forum:

  • A Swiss non-for-profit organisation
  • It promotes free trade and is in favour of TNCs
  • It aims to bring businesses and governments together, encouraging public and private co-operation