The document delves into the realm of global economic institutions, focusing on

international financial institutions (IFIs) and global corporations. It discusses

the historical background and the rationale behind the establishment of IFIs,
emphasizing their role in supporting economic development through loans, grants,
and technical advice. Additionally, it sheds light on the benefits and limitations
associated with IFIs, highlighting the need for further action to enhance their
impact.

Moreover, the document explores the expansion and influence of global corporations,
particularly multinational corporations (MNCs) and transnational corporations
(TNCs), in the global economy. It underscores the contributions of these
corporations to national and global economies while also addressing concerns
regarding their corporate social and environmental responsibilities.

Furthermore, the text touches upon the concept of market integration, detailing how
economies are becoming more interconnected through the flows of goods, services,
and capital. It outlines the historical evolution of global market integration,
tracing it from the sixteenth century to the present day, driven by advancements in
technology and policy support from IFIs and governments.

In terms of reform efforts, both IFIs and global corporations are depicted as
striving to enhance transparency and address social and environmental impacts in
their operations. These initiatives are seen as crucial in navigating the
complexities of the modern global landscape.

Overall, the document provides insights into the intricate interplay between
international financial institutions, global corporations, market integration, and
the evolving dynamics of the global economy, underscoring the importance of
responsible practices and continuous improvement in the face of changing economic
and social landscapes.

Market Integration - is a process by which economies are becoming more independent

and interconnected in terms of community flows including externalities and
spillover of impacts.

International Financial Institutions or IFIs - are institutions that provide

support through loans or grants and technical advices to promote a country’s
economic and social development.

Corporations - are private institutions that produce or manufacture

goods, products, and services for a more expanded market usually
at the reach of regions or the world.

TNC - Transnational corporations - have a more complex setting where each foreign
subsidiary is given some freedom to develop its own product lines and
marketing.

MNC - multinational corporations - which have more of a home or country base taking
care of the R&D and marketing and focus more on exporting their products and
services.

Two kinds of market integration

1. horizontal integration – happens when a firm

gains control of other firms performing similar
marketing functions at the same level in the
marketing sequence.
2. vertical integration – happens when one
company owns the operations and products from
one stage to the other along the supply chain.

the five multilateral development:

banks (MDBs)

Global:
1. the World Bank Group -
Regional Banks:
2. the African Development Bank
3. the Asian Development Bank
4. the Inter-American Development Bank, and
5. the European Bank for Reconstruction and Development

■ Long-term loans (with maturities of up to 20 years) based on

market interest rates. To obtain the financial resources for these
loans, MDBs borrow on the international capital markets and re-lend
to borrowing governments in developing countries.

■ Very-long-term loans (often termed credits, with maturities of 30

to 40 years) - at interest rates well below market rates. These are
funded through direct contributions by governments in the donor
countries.

■ Grant financing is also offered by some MDBs, mostly for technical

assistance, advisory services, or project preparation.

IFI - International Financial Institutions

•African Development Bank

• Asian Development Bank
• European Bank for Reconstruction and Development
• Global Monitoring Report
• Inter-American Development Bank
• International Monetary Fund
• Managing for Development Results
• World Bank