International Political & Economic Organisations
Politics & Economics of Globalisation
- Globalisation can be viewed as a threat so governments sometimes try to protect themselves from global flows such as Foreign Direct Investment (FDI) from TNCs
- International Organisations work with countries to encourage them to consider the idea of a global economy differently
The Role of International Organisations in Globalisation
|
World Trade Organisation (WTO) |
International Monetary Fund (IMF) |
World Bank |
Role in Globalisation |
1995 - Took over from the General Agreement on Tariffs and Trade Promotes trade liberalisation e.g., for manufactured goods |
Transfer loans from HICs to countries that have applied for help Recipients of the loan must agree to run free market economies so TNCs can locate there easily |
Lends money on a global scale Gives direct grants to developing countries |
Evaluation of their Role |
Failed to stop the USA and EU from subsidising their own food producers which hinders farmers in LDCs |
Strict conditions on governments borrowing which may result in the governments reducing spending on healthcare, education etc.…
|
Distributed US$65 billion in loans and grants Imposes strict conditions on loans and grants Controversially, all World Bank presidents have been US citizens |
Worked example
Explain one reason why free trade policies are promoted by international economic organisations.
[4 marks]
- 1 mark is awarded for one reason why free trade policies are promoted
- The remaining 3 marks will be awarded for your explanation
Answer:
- One mark can be awarded for any of the following reasons:
- The World Trade Organisation (WTO) promote free trade policies so global trade can operate as easily as possible [1]
- The WTO aims to reduce trade barriers [1]
- Trade blocs such as the EU or ASEAN promote free trade so that no taxes or tariffs are used when trading goods and services [1]
- To achieve the full 4 marks you will need to explain one of these points in more detail
- Here is an example of how to explain one of these points:
- The World Trade Organisation (WTO) promote free trade policies so global trade can operate as easily as possible [1] by reducing taxes or tariffs [1] which helps remove costs from businesses [1] which enables global production and the trading of goods or services [1]
Exam Tip
Your paper 3 is synoptic which means it will be based on a geographical issue with strong connections to topics you have studied and will link to three themes:
- Players
- Attitudes and actions
- Futures and uncertainties
It is important you are aware of the different players and their role in globalisation, for example, organisations such as the World Trade Organisation (WTO), the World Bank and the International Monetary Fund (IMF)