Presentation on theme: "Muhammad Waqas The Global Economy Lecture 4. Muhammad Waqas Recap Internatonal trade The basic theories of world trade Balance of payments Exchange rates."— Presentation transcript:
Muhammad Waqas The Global Economy Lecture 4
Muhammad Waqas Recap Internatonal trade The basic theories of world trade Balance of payments Exchange rates
Muhammad Waqas International Agencies for Promoting Economic and Monetary Stability 1.International Monetary Fund (IMF) 2.World Bank 3.Group of Seven 4.European Monetary System
Muhammad Waqas International Monetary Fund (IMF) Core mission is to help stablize an increasing global economy. Promote orderly and stable foreign exchange markets, restore free convertibility amony currencies of member nations, reduce international impediments to trade, and provide assistance. Countries have to meet certain standards to qualify for assistance
Muhammad Waqas World Bank Act as intermediary between the private capital markets and the developing nations. Makes long-term loan (usually 15 or 25 years) carrying rates that reflect prevailing market conditions.
Muhammad Waqas Group of Eight (G8) The world’s leading industrial nations have established a Group of Eight, which meets regularly to discuss the world economy. The members work together to help stabilize the world economy and reduce extreme disruptions.
Muhammad Waqas European Monetary System The EMS included measures to force members countries to regulate their economies sot that their currencies stayed within limits of the central rete.
Muhammad Waqas Protectionism and Trade Restrictions 1.Tariffs 2.Quotas 3.Orderly Marketing Arrangements and Voluntary Export Restrictions 4.Formal and Administrative Nontariff Trade Barriers 5.General Agreement on Tariffs and Trade (GATT) 6.World Trade Organization (WTO)
Muhammad Waqas Economic Integration as Means of Promoting Trade Free-Trade Areas Customs Unions Common Markets Monetary Unions
Muhammad Waqas The Global Economy Moving from a set of strong national economies to a set of interlinked trading groups. World is moving toward a single global economy. Information technology, telecommunications, and the internet have made worldwide information on prices, products, and profits avaliable globally and instantaneously.
Muhammad Waqas Summary International agencies for promoting economic and monetory stability Protectionism and trade restrictions Economic integration as a means of promoting trade The Global Economy
Muhammad Waqas References Gillespie, K., Jeannet, J.P. and Hennessey, H.D. (2004), Global Marketing: An Interactive Approach, Houghton Mifflin, Boston, NY.