Select one of the issues listed below and undertake an in depth analysis of the topic These issues are related to contemporary topics in international business You are expected to undertake further research into the underlying theories and concept relating to this topic in the academic literature and also discuss and provide recommendations

Length:  8 pages (2674 words) | Sources:  8  | Citation Style:  Harvard | Subject:  Business - International | Paper: #29440584 | Author:  

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On the surface, these two objectives are complementary. The IMF appears to operate on the principal the social justice flows from economic development; the World Bank appears to operate on the belief that economic development flows from social justice. Yet, there is significant overlap between the two institutions. The Bank is forced to contribute to the IMF's financial rescue missions; the IMF wants to involve itself in monetary issues that the World Bank is better equipped to deal with (The Economist, 2007).

Present Situation

That the IMF and World Bank step on each other's toes as much as they do given their different mandates and perspectives highlights the need for discussion about the future of the two institutions. First, however, it is important to understand the precise roles each plays in today's economic system.

The IMF has maintained its role as an institution primarily focused on economic issues. This has often come in the form of loans to alleviate financial crises. As developing economies around the world struggle with the growing pains on industrialization, they require IMF loans to stabilize their currencies and their economies. In return for these loans, the IMF subjects these economies to a series of conditions, typically involving a move towards free market principles. However, in recent years the IMF has had fewer such crises to deal with. Countries that have generated repeated crises over the years such as Turkey and Argentina have finally been able to stabilize and repay their IMF loans (Swann, 2006). This has left the IMF in a position of decreasing relevance, and decreasing size.

With increasing deregulation of global trade and the move towards modernization of dozens of formerly undeveloped economies, the IMF is simply running out of potential customers. In light of the original mandate of the IMF, the need for some of those mandates has diminished. Currency exchange is relatively stable, and an increasing amount of currencies are floating freely. The Euro is rising to provide an alternative to the US dollar as the world's reserve currency. A multilateral system of payments is emerging as the private sector begins…[continue]



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APA Citation

"Select One Of The Issues Listed Below And Undertake An In Depth Analysis Of The Topic These Issues Are Related To Contemporary Topics In International Business You Are Expected To Undertake Further Research Into The Underlying Theories And Concept Relating To This Topic In The Academic Literature And Also Discuss And Provide Recommendations" (2009, April 17) Retrieved September 3, 2014, from http://www.paperdue.com/essay/Select-one-of-the-issues-22786

MLA Citation

"Select One Of The Issues Listed Below And Undertake An In Depth Analysis Of The Topic These Issues Are Related To Contemporary Topics In International Business You Are Expected To Undertake Further Research Into The Underlying Theories And Concept Relating To This Topic In The Academic Literature And Also Discuss And Provide Recommendations" 17 April 2009. Web.3 September. 2014. <http://www.paperdue.com/essay/Select-one-of-the-issues-22786>

CHICAGO Citation

"Select One Of The Issues Listed Below And Undertake An In Depth Analysis Of The Topic These Issues Are Related To Contemporary Topics In International Business You Are Expected To Undertake Further Research Into The Underlying Theories And Concept Relating To This Topic In The Academic Literature And Also Discuss And Provide Recommendations", 17 April 2009, Accessed.3 September. 2014, http://www.paperdue.com/essay/Select-one-of-the-issues-22786