The Roles of World Bank in Promotion Economic Independence

The Roles of World Bank in Promotion Economic Independence
The Roles of World Bank in Promotion Economic Independence

The World Trade Organization (WTO) and the International Monetary Fund (IMF) have been playing a key role in promoting economic independence and prosperity among member states.


Imf world bank gatt are both institutions that work to help member nations build trade relationships with other countries. These agencies help members devise policies and plans for making the most of their trading networks, while also overseeing international finance agreements like the General Agreement on Tariffs and Trade (GATT). The agencies also oversee trade negotiations through the multilateral negotiating process, which has been ongoing since 1947.



Both the IMF and WTO serve to help member nations participate in free trade by promoting domestic trade and competition policies. Trade liberalization is a system of economic policy that promotes the free flow of goods, services, and capital among countries.



Free trade helps a country’s citizens obtain more goods and services at cheaper prices through open global markets. It also helps them gain access to skills for industries that will help them climb up their national product levels.



Some analysts believe that th ere is no link between per capita income growth and the presence of open economies, but this seems not to be the case in many instances where there are high levels of investment in research, technology, pollution control and other areas that require professional labor.



Critics of free trade, including those who are affected by its disappearance, such as farmers and workers, point to the division between rich and poor countries that has occurred as a result of the trends that subsidies to agriculture have given rise to in many developed countries.


By taking advantage of cheap agricultural products these countries have gained more industrial production but at a cost of creating artificial markets at which less-producing commodities can be sold for higher prices; this is known as dumping.



One method of restraining dumping practices is the import quota system, whereby certain goods are allowed into a country at a predetermined price that is set by quotas established by national governments. These quotas are often set based on the amount of the good that a country exports. For example, the United States has many textile import quotas, meaning that it allows imports at a cheaper rate, but only if they meet specific guidelines.



Critics of free trade also point out that by creating products in one country and then selling them in another for higher prices than if made locally, free trade favors large companies who can afford to do so over smaller companies because it puts extra stress on companies to produce more goods and services at cheaper rates. For example, multinational corporations who receive tax breaks from certain countries that use free trade policy are able to sell their goods at lower prices by avoiding corporate income taxes.



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