Part1: Please answer the question in a min of 250 words.
- Discuss the role of the International Monetary Fund in global trade and how this differs from the role of the World Bank.
- Your textbook discusses economic and political factors that influence the exchange rates of foreign currency. Choose from one (1) of the economic and political factors discussed in your textbook and explain how your selection influences foreign exchange rates. Next, determine the impact of your chosen factor on the exporting and importing country. The Two factors that I choose are Government Spending and Leadership Change from the textbook.
Part 2: Please comment and give your opinion on the student post below. Please answer the the question in a min of 100 words.
The International Monetary Fund (IMF) was established to oversee the newly agreed upon monetary system. During the 1960s, the U.S. Treasury was obligated to convert dollars to gold by demand of foreign central banks. The IMF was an agency within the United Nations, established to effectively promote monetary cooperation between countries and to facilitate trade expansion, and to improve economic conditions and contribute to increased employment in all member countries.
Different from the IMF, the World Bank, formally known as the International Bank for Reconstruction and Development, was initially intended for financing of postwar reconstruction and development. Currently, the World Bank has two important goals to boost shared prosperity and ending extreme poverty within a generation. They also provide grants and low interest loans to developing countries and invest in agriculture, health, and education.