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IMF:Where does the IMF obtain its money from? The IMF receives its money from the countries that
surround it. Each country’s quota is determined based on the size of itself and quotas of countries
similar to it. When joining the IMF, a country has to pay 25% of its quotas in currencies that are
accepted everywhere and 75% of its own (IMF, 2002)1.
Does the IMF help poor countries? If so, how? Yes, by helping navigate the global financial
crisis. The IMF does this by keeping some countries eligible for its resources. These resources
aid in raising growth, reducing poverty and increasing resilience when it comes to global
shocks (IMF, 2012)2.
Why was the IMF formed in the first place? The IMF was formed to make international
monetary cooperation better, make currency exchange rates more stable and to make access to
international hard currencies easier (Britannica)3.
What is the relationship between the IMF and the World Bank? They were created to support the
international economy even though they have different roles (Noone, 2017)4. Do we need them
both? Explain. I don’t think we need both of them. I find the IMF to be a little too demanding
and unrealistic to the nations of its choice. The IMF only helps members who are part of their
organization, and the IMF also wants the members to freely exchange national currencies. The
IMF helps members only when they run into difficulty, they expect the member to build another
economic policy or change their current one on their own (Noone, 2017)5. I find that the world
bank is more free, open and helpful. The world bank helps countries develop economically till
they are good to go, the world bank finances money to them for their use. This is done by
funding for specific projects which will help in increasing productivity. The world also changes
based on the country, if the country is developing they ask for interest. If it is poor, they don’t
(Noone, 2017)6. I think the world bank is enough.
WTO:
What are the principles of the WTO? The principles of WTO are freer trade - trade barriers
should be removed slowly by having negotiations, predictability - when a nation makes trade
rules stability and predictability must be a reason behind it, fair competition is promoted,
development is encouraged and the economy is changed (Mridusmita, 2017)7.
When was it formed? 1 January 1995 (Mridusmita, 2017)8.
Why was it formed? The main reason is to slowly remove barriers when it comes to trade
between nations (Mridusmita, 2017)9.
Compare and contrast the WTO and NAFTA. List 2 differences and 2 similarities. The first
difference is WTO helps the whole world and NAFTA is related to the American region only.
The second difference is that WTO is an international organization while NAFTA helps Canada,
US and Mexico only (The lawyers and jurists)10. The first similarity is that both are trade systems
that help in maintaining trade in each system as well as in themself (Flores, 2014)11.
EU:
How did the European Union originate? The EU was created at the end of world world 2 when
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