INSTITUTE OF MANAGEMENT SCIENCE(IMS)

UNIVERSITY OF LUCKNOW

ASSIGNMENT OF INTERNATIONAL BUSINESS

TOPIC :- IMF

Submitted to:
Mrs. Neelanjali Jaiswal mam

Submitted by:
Narendra Singh
BBA CORE
SEM- 6
WORLD BANK & IMF
(INTERNATIONAL MONETARY
FUND
WORLD BANK:-

WORLD BANK was created at BRETTON WOODS in 1944 to lend to

European country to help them rebuilt after world war II.

An INTERNATIONAL ORGANISATION dedicated to providing

financing, advice and research to developing nations to aid their
economic advancement. The facilities that world bank provides low-
interest loans, interest-free credit and grants (grants are designed to
facilitate development projects by encouraging innovation, co-
operation between organizations and local stakeholders’ participation
in projects)to developing countries.

These loans are for education, health, infrastructure, communications

and many other purposes. Unlike other financial institutions,

World Bank does not ‘operate’ for ‘profit.

WORLD BANK GROUP
International Bank for Reconstruction and Development (IBRD)

International Development Association (IDA)

International Finance Corporation (IFC)

Multilateral Investment Guarantee Agency (MIGA)

International Centre for Settlement of Investment Disputes (ICSID)

OBJECTIVES
The objectives of world bank are as follows:-

a. To provide long–run capital to member countries for economic

reconstruction and development.

B. To induce long–run capital investment for assuring Balance of

Payments (BoP) equilibrium and balanced

Development of international trade.

b. To provide guarantee for loans granted to small and large units

and other projects of member countries.
c. To ensure the implementation of development projects so as to
bring about a smooth transference from war-time to peace
economy.
d. To promote capital investment in member countries by the
Following ways:-

o To provide guarantee on private loans or capital investment

o If private capital is not available even after providing guarantee, then

IBRD provides loans for productive activities on considerate condition.

FUNCTIONS /PURPOSE
The function/purpose of world bank are as follow

a. Granting reconstruction loans toward evastated countries.

B. Granting development all oan sto Underdeveloped countries.

c. Providing loans to private concerns for specified projects.

d. Providing technical, economic and monetary advice to member

countries for specific project.

e. Encouraging industrial development of under developed countries by

promoting economic reforms.
IMF (INTERNATIONALMONETARY
FUND)

DEFINITION
It is an organization of 186 countries, working to faster global
monetary cooperation, secure financial stability, facilitate international
trade, promote high employment and sustainable economic growth and
reduce poverty.

HISTORY
IMF was created in 1946.

IMF stated to make service with IBRD (International Bank of

Reconstruction and Development) in1947.

The IMF was created to support orderly international currency

exchanges and to help nations having balance of payment problems
through short terms loans of cash.

FUNCTIONS
The functions of IMF are as follows-
1. It serves as a short term credit institution the fund provides a
mechanism for
2. Improving short-term balance of payment.
.The fund provides machinery for international consultations.
3. It provides a reservoir of the currencies of the member countries
and enables members to borrow one another’s currency.
4. It promotes orderly adjustment of exchange rates to promote
exchange stability.

OBJECTIVES:
a. To promote international monetary cooperation.
b. To facilitate the expansion and balanced growth of
International Trade.
c. To promote exchange rate stability.
d. To make its resources available to its members who are
experiencing BoP problems.
e. To establish a multilateral system of payments.