IB5014-8 International Environment Week 5 Use as a guide only.
IB5014-8 International Environment Week 5 Use as a guide only. nurs
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This 7 page Study Guide was uploaded by NUMBER1TUTOR Notetaker on Wednesday November 4, 2015. The Study Guide belongs to nurs at California State University - Dominguez Hills taught by in Fall 2015. Since its upload, it has received 52 views.
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Date Created: 11/04/15
RUNNING HEAD: Breton Woods institutions Page 1 of 7 BRETTON WOODS INSTITUTIONS CONCEPT Bretton Woods institutions are based on the concept of financial security of all nations and equal opportunity for free and fair trade to all countries irrespective of their political and military dynamics with each other. Also, this means that all countries have equal opportunity to grow economically and financially by following uniform rules for financial dealings and standards. The concept came into light after World War I when some nations suffered a major setback because of absence of any standard for value of currency and thus depletion of resources to buy basic necessities from the richer nations. There was a need for a system by which monetary and financial institutions in any country will have to be run along with valuation of currency in international market. This led to a chief feature of this system which was compulsion for every country to adopt a monetary policy and link its currency to gold. This meant that the Bretton Woods institutions could help in case of economic crisis and make every county cooperate with each other in terms of financial growth. RUNNING HEAD: Breton Woods institutions Page 2 of 7 INCEPTION Bretton Woods Institutions came into being after a conference held at the Mount Washington Hotel in Bretton Woods, New Hampshire, United States, for the United Nations Monetary and Financial Conference, also known as the Bretton Woods Conference. It comprised of 730 delegates from all 44 Allied nations during World War II. ROLE AND RESPONSIBILITIES IMF and other Bretton Woods Institutions facilitate, encourage and regulate smooth monetary exchange across the international boundaries. They basically aim to make sure that countries do not face any problems while trading with each other and they follow certain set of rules and regulations so that no country is at undue advantage or disadvantage. The basis for this is the fairness and equality being imparted to each country in the world and hence conveying the message that trade should not be influenced by preferences or biases towards any country in the world. RUNNING HEAD: Breton Woods institutions Page 3 of 7 The rules are international multilateral trading system that are signed by many countries who want to trade according to the parameters laid down by Bretton Woods Institutors and are legal binding on the countries that ratified them. Any subsequent dispute arising between the nations are channelized to dispute settlement process which balances between the agreements commitments and policies which reduces the risk of involving political and military power of any country. CURRENT RELEVANCE International trade of the United States encompasses the global exports and imports of the United States, one of the domain's most noteworthy financial markets. The nation is amongst the topmost three worldwide traders and partners. The guideline of trade is constitutionally bestowed in the United States Assembly. After the Great Depression, the nation arisen as amongst the most important international trade policymakers and it is currently a partner to a numerous worldwide trade arrangements, including the International Trade Organization (ITO) and General Agreement on Tariffs and Trade (GATT). Gross U.S. properties held by foreigners were USD16.3 trillion as of the end of 2006 (over 100 per cent of Gross Domestic Product). RUNNING HEAD: Breton Woods institutions Page 4 of 7 If the external debt signifies foreign possession of national assets, the consequence is that leasing income, stock bonuses, capital increases and extra investment revenue is expected by foreign depositors, instead of by U.S. inhabitants. Conversely, when American debt is apprehended by foreign savers, they take delivery of interest and principal payments. As the trade imbalance puts extra cash in hands external of the U.S., these cash might be used to capitalize in fresh possessions (foreign direct investment, such as fresh manufacturing units) or be used to purchase current American resources such as shares, real estate and pledges. By means of an increasing trade deficit, the revenue from these resources progressively transfers overseas. Bretton Woods Agreements aim to limit and eradicate bias against and unfair practices towards the developing countries. Some of the Bretton Woods rules are intellectual property, competition policy trade facilitation, antidumping and subsidies, investment, transparency in government procurement, and a range of issues raised by developing countries as difficulties they face in implementing the present Bretton Woods agreements. 100 technical cooperation missions are organised by Bretton Woods for developing world annually along with holding three trade policy courses in Geneva for the government officials. RUNNING HEAD: Breton Woods institutions Page 5 of 7 Efforts are also being made to help countries that do not have permanent representatives in Geneva. This ensures that developing world participates in the global trade and their factors of country advantage are used in productive manner. Also, the difference between the economic developments is minimised when they become part of the globalisation. CONCLUSION Bretton Woods has made sure that international trade becomes accessible to every country in a fair and equal manner. It has made it possible for poor countries to take advantages of globalization and improvements in communication across the borders and make their goods, services, human resources and raw materials available to countries that can compensate them with good amount of foreign exchange. RUNNING HEAD: Breton Woods institutions Page 6 of 7 References Edward S. Mason and Robert E. Asher, (1973) "The World Bank Since Bretton Woods: The Origins, Policies, Operations and Impact of the International Bank for Reconstruction.Washington DC: Brookings Institution, , 29. Michael Hudson, Super Imperialism: The Origin and Fundamentals of U.S. World Dominance, 2nd ed. (2003), ch. 5 Keynes, John Maynard. "Economic Consequences of Mr. Churchill (1925)" in Essays in Persuasion, edited by Donald Moggridge. 2010 WTO International Trade Statistics (2012), Released April 2013 RUNNING HEAD: Breton Woods institutions Page 7 of 7
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