Globalization is the combination and integration of economies, markets, and cultures around the world. Countries become integrated through the global network of trade and transportation. In the recent past, globalization was limited to the exchange of goods and services around the world and involved much of trade, foreign direct investment, and capital flows. In recent times, the term globalization has encompassed a range of activities like culture, media, and technology, political and socio-cultural activities. International trade and investments the whole process is much aided by information technology drive the process of globalization. The internet has played a crucial role in the whole globalization thing, the interaction of people, governments and organizations have been much aided by the internet. Globalization though is not a new concept, people have interacted and involved in a trade for many years even before the world wars. The internet came in handy as it helped and connected people with ease.
The International Monetary Fund is a bank that serves as the moneylender for modern governments. The Monetary fund was established following the Second World War. It was primarily established with the main objective of post-war recovery. It also acts as the overseer of the international financial market. The World Bank also acts as an international financial institution that provides loans to modern governments for capital projects. The World Trade Organization is a global organization that deals with the rules of trade between countries. The primary goal of the World Trade Organization is to aid a smooth flow of business and to help producers of goods all over the world to conduct their business. These three organizations have helped the world in globalization, besides the internet, the three organizations have played crucial roles in promoting and maintain globalization. They have eased the level of interaction between countries (Ahmed, 2015).
Delegate your assignment to our experts and they will do the rest.
In serving its mission alone the World Bank is aimed at accelerating the process of globalization, the World Bank mission states that it is a source of financial and technical help to countries especially developing countries around the world. In serving that mission, the World Bank is providing bi-directional acceleration that leads to globalization. Nations that receive World Bank loans achieve social changes and opportunity to develop their infrastructural systems like roads and enhance their social aspect like developing on health and improving education. This provides the nation with the ability to participate in the global economies and trades. When a country has, well-built roads and airports that means traders will have the opportunity to conduct business across their borders and overseas and that accelerates globalization. The member countries of the World back enjoy unrestricted trade, they have their producers connect and have access to larger international markets. The loans that are received from World Bank to developing economies enable those countries to face stronger competition in other international markets this then accelerates globalization. The World Bank enables developed countries to access the developed countries and thus extending their technology and trade to this nations, this then boosts globalization. The loans from the World Bank will enable better trading between other countries and will place the receiving loan country in the world map of trading. The World Bank encourages member countries to engage in international trade to help them repay the loans they have borrowed. The exchange of knowledge and technological equipment from developed countries to those that are receiving the World Bank loans is beneficial to them. In a sense that they are given a chance to catch up on matters of productivity with developed countries and thus can make them production partners in the global trading marketplace and thus globalization is accelerated by the World Bank (Ahmed, 2015).
The International Monetary Fund on the hand is also a source of financing. They offer a platform that addresses economic difficulties for countries before they reach a crisis. The International Monetary Fund offers member’s countries with sound economic policies that will enable boost their trade. They also encourage nations to pursue sound economic policies that will not affect them in the global market. Among its many roles, the International Monetary fund facilitates the expansion and balanced growth of international trade. This ensures that there is fair trade among nations and that the weaker nations have a part to play and participate in the global market and thus accelerating globalization to countries with weaker economies. The International Monetary fund also ensures that there is an establishment of a multilateral payment system in member countries. When countries fail to repay their loan with the IMF, they sell the country’s companies and parastatal organizations to other countries that have the ability to operate them and thus enabling a continuous globalization that existed before. The IMF accelerates globalization by providing a complimentary purpose just like the one that the World Bank servers. The IMF removes barriers and high trade tariffs of currency exchange among nations and this makes it easier for member countries to transact in the global market. It also offers currency stability that without currency stability the world leading currencies would become too dominant in the global market. Without the currency stability of the IMF, countries with weaker economies would face a devaluation of their currency that would result in a global financial crisis. The IMF plays a crucial role in globalization, the weaker and developed countries get the advantages of the Fund, and the developed countries rely on the fund for currency stability (Li, Qiu, & Wan, 2011).
The World Trade Organization is the only organization that has the purpose and objective of dealing with the rules and regulations trade between nations. The main purpose of the organization plays a crucial role in accelerating globalization because the organization ensures that trade barriers are lowered and encourage countries to trade with each other. This encouragement promotes globalization. The organization also encourages member countries to participate in a fair competition between countries. The organization also is crucial in accelerating globalization because it trains member countries to participate in the global trade and the making of economic policies that are relevant to global trade.
The World Trade Organization unlike the World Bank and the IMF it does not provide financial assistance to member countries. It provides an assistance and substantial engagement towards accelerated globalization. This is achieved by the rules and regulations that are set for engaging in global trade. These rules are often favorable and fair to member countries; this encourages countries to participate more in international trade. The World Trade organization also ensures that international trade disputes between countries are settled, this disputes, if not settled, can bring harsh trade embargos that will significantly affect globalization. To accelerate globalization the organization settles such disputes and ensures that there is a smooth operation of trade among countries. The World Trading organization also builds trade capacity. Such trade capacity is meant to assist developing countries to have a breakthrough in international trade. The trade capacities increase trading opportunities and boost their trading capacity (Li, Qiu, & Wan, 2011).
In conclusion, these organizations are beneficial in accelerating globalization. Globalization is enjoyed all over the world even for those countries with weaker economies. These organizations have helped developing countries expand their opportunities and exploit their resources by selling them in the international trade. This then boosts their economies.
References
Ahmed, F. (2015, November 12). Globalization: The roles of the World Bank (WB), International Monetary Fund (IMF), and World Trade Organization (WTO). Retrieved from https://michaelahmed.net/2015/08/14/globalization-the-roles-of-the-world-bank-wb-international-monetary-fund-imf-and-world-trade-organization-wto/
Li, S., Qiu, J., & Wan, C. (2011). Corporate globalization and bank lending. Journal of International Business Studies , 42 (8), 1016-1042. doi:10.1057/jibs.2011.29
