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Internation Financial Organizations

Evaluate the roles of international financial organizations and explain their impact on the international trade and investments in regards to the stages of economic development.

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Evaluate the roles of international financial organizations and explain their impact on the international trade and investments in regards to the stages of economic development.

The role of the financial organizations in the world is to develop the financial sector along with providing support when needed. Each of the different important financial organizations has had an impact on international trade and investment. These banks have also affected different countries that are on different stages of development.

We first consider the International Monetary fund. It has influenced international trade and investments by overseeing and supervising the global financial system. The method used by the IMF is to closely follow the macroeconomic policies of its member states. If there are barriers to trade, its seeks to lower those barriers and if facilitates the flow of foreign direct investment in its member countries. If the stage of development in a country is that of traditional society, the IMF provides funds that create preconditions for take-off and where preconditions exist, it facilitates the takeoff.

Another financial institution that we consider is the North American Development Bank. This is a bi-national financial institution capitalized and owned by ...

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