IGOs and globalisation

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  • Created by: Dreynolds
  • Created on: 05-11-17 14:57

the World Trade Organisation(WTO)

Role: Removing trade barriers in countries on foreign influence and exposing local products and businesses to a global market.

Method: It attempts this through negotiation and by offering a loan to countries for development and in return asks them to remove red tape(global trade barriers) to allow for global trade and Tnc investment in the country.

Example:Pakistan is a prime example, the WTO gave a loan to Pakistan for development and in return Pakistan opened up it's fishing waters to global influence however, once this happened India entered the waters and stole all the fish putting Pakistan fishermen out of work and reducing the countries economy, to this day Pakistan is still in debt for India's over fishing. 

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the Inter Monetary Fund(IMF)

Role:Similar to the WTO it's members pool money into loans for countries that apply for help and in return those countries must be open to a global market and external investment.

Method:The member countries pool money into funds for poorer countries to apply for but, to recieve the fund those countries must be open to a global market and external investment from TNCs, some may even have to spend less of the fund on infrastructure and more on TNC development to recieve the fund. Member countries vote on which countries to help but vote strength is dependent on how much that country invested into the fund and not how many members there are from each country.

Example:South Asian countries have been invested in and are now more intergrated in global economy however, living conditions are atrocious and the countries are in huge debt for the loan.

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