Contribution of International Monetary Fund in Global Trade

Running head: INTERNATIONAL BUSINESS
International Business
4/3/2019

INTERNATIONAL BUSINESS 1
Executive Summary
International Monetary Fund is the organization established to nurture worldwide monetary
collaboration, safe financial constancy, enable international trade, endorse increasing
employment and defensible economic development and decreasing poverty at the global
level. It is regularly getting involved in different activities for the growth at the global level.
In order to analyze its contribution, this paper has highlighted the way IMF contributes to
global trade and its contribution to the 21st-century global trade. The analysis represents that
IMF collects different information related to international trade, national economies, etc. in
order to frame monetary and fiscal policies for the development of global trade. In the 21st
century, the IMF monitors the financial system at a global level to frame strategies for
continued economic development.

INTERNATIONAL BUSINESS 2
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
International Monetary Fund..................................................................................................3
Surveillance........................................................................................................................5
Capacity Building...............................................................................................................5
Lending..............................................................................................................................5
Regular Consultation..........................................................................................................6
Training and Technical assistance.....................................................................................7
Fund aid for trade liberalization.........................................................................................7
Coordination.......................................................................................................................7
The contribution of the International Monetary Fund in the 21st century’s Global Trade.....7
Supporting Developing Markets......................................................................................11
Low-Income nation engagement......................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................14

INTERNATIONAL BUSINESS 3
Introduction
The aim of the paper is to identify the contribution of the International Monetary Fund in the
improvement of world trade. The IMF was introduced in the year 1945 by the Bretton Woods
Agreement in order to help nations with the problems of short BOP that is balance of
payments, but its part in the present era has altered vividly. A number of people contend that
the International Monetary Fund is converting as the world central bank with controls of
investigation over national economic guidelines, provisional loans to deficit nations, and
world liquidity control (Modi and Saravia, 2013). The extent to which it adds in the
development and aids is the key focus of this paper.
International Monetary Fund
The International Monetary Fund is the body of total 189 nations, operating to nurture
worldwide monetary collaboration, safe financial constancy, enable international trade,
endorse increasing employment and defensible economic development and decreasing
poverty at the global level. The organization was formed in the year 1945 and is ruled and
accountable to every member nations (International Monetary Fund, 2019a). According to
Reinhart and Trebesch (2016), the primary aim of the International Monetary Fund is to
confirm the constancy of the comprehensive monetary system. It is the organization of
exchange rates as well as international payments that enables nations to manage the
operations with each other. The mandates of the fund were last updated in the year 2012 to
comprise all the issues of a financial and macroeconomic sector that bear on global stability.