Market

Integration
 According to the Cambridge Business
English Dictionary, market integration is a
situation in which separate markets for the
same product become one single market.
For example, when an import tax in one of
the markets is removed.
 The Bretton Woods Agreement and System
The Bretton Woods Agreement was
negotiated in July 1944 by
delegates from 44 countries at the
United Nations Monetary and
Financial Conference held in
Bretton Woods, New Hampshire.
Thus, the name “Bretton Woods
Agreement.
Under the Bretton Woods System, gold
was the basis for the U.S. dollar and other
currencies were pegged to the U.S. dollar’s
value. The Bretton Woods System
effectively came to an end in the early
1970s when President Richard M. Nixon
announced that the U.S. would no longer
exchange gold for U.S. currency.
Features of the Bretton Woods System
First, it was a US dollar-based system.
Second, it was an adjustable peg
system.
Third, capital control was tight.
Fourth, macroeconomic performance
was good.
 The Roles of The International Institutions in The
Creation of Global Economy

The World Trade Organization

 The World Trade Organization is a global membership group
that promotes and manages free trade. It does this in three
ways. First, it administers existing multilateral trade
agreements. Every member receives Most Favored Nation
Trading Status. That means they automatically receive lowered
tariffs for their exports.
 Second, it settles trade disputes. Most conflicts occur when
one member accuses another of dumping. That's when it
exports goods at a lower price than it costs to produce it.
The WTO staff investigates, and if a violation has occurred,
the WTO will levy sanctions. Third, it manages ongoing
negotiations for new trade agreements. The biggest would
have been the Doha round in 2006. That would have eased
trade among all members. It emphasized expanding growth
for developing countries.
The International Monetary Fund (IMF)
IMF is a cooperative institution that 182 countries have
voluntarily joined because they see the advantage of
consulting with one another on this forum to maintain a
stable system of buying and selling their currencies
IMF lends money to members having trouble meeting
financial obligations to other members, but only on the
condition that they undertake economic reforms to
eliminate these difficulties for their own good and that of
the entire membership.
World Bank
Multinational financial institution established at the
end of world war II (1944) to help provide long-term
capital for the reconstruction and development of
member countries.
 It provides much of the planning and financing for
economic development projects involving billions of
dollars.
Thank You!