How WTO, WB, and IMF Accelerate Globalization

How WTO, WB, and IMF Accelerate Globalization
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How WTO, WB, and IMF Accelerate Globalization
The economy of the world has increasingly integrated, and numerous corporations are operating beyond national borders. Globalization entails the movement of services, capital, and goods across countries. In particular, it has led to the spread of culture, technology, economics, and politics. The pervasiveness of the globalization process affects all businesses, including large, medium-sized, small, multinational, and domestic, in numerous ways. In most cases, companies start by building successful businesses locally before they export their services and products globally. The three primary globalization strategies include source, sell, and make. Currently, numerous firms have three main elements of an international business, namely supply chains, manufacturing operations, and market channels (Lawrence & Weber, 2016). The paper describes the roles of the International Monetary Fund (IMF), World Bank (WB), and World Trade Organization (WTO) in accelerating globalization.
The International Financial and Trade Institutions (IFTIs), including the IMF, WB, and WTO, play significant roles in fueling globalization since they establish rules that are adhered to in the transactions of international commerce and determine who loses or wins in the world economy (Lawrence & Weber, 2016). Specifically, the WB was founded in 1944. During this period, the Second World War was ending. One of the primary purposes behind the establishment of the WB was to offer economic development loans and grants to its member countries to rebuild their war-torn economies, particularly in Europe. Currently, the WB provides significant economic development help to various nations. For example, in 2014, it offered about $66 billion in grants, equity guarantees and investments, and loans to be used in social services, health, education, building dams, roads, plants, and other infrastructure projects (Lawrence & Weber, 2016). By doing so, it helps countries to develop and obtain relevant technologies that facilitate globalization. For instance, providing enough financial assistance enables businesses to succeed and enter the global market since they run their normal operations smoothly. Another way that the WB fuels globalization is by helping developing countries to access the world markets and facilitating their participation and contribution to the international trading system (The World Bank, 2021). Effective trading practices are the backbone of economic growth and development. Through financial assistance, the WB helps nations create their own wealth, employ more people, increase economic opportunities, and decrease poverty. As such, individuals and enterprises are empowered to enter the global market. Developing and underdeveloped nations are the ones that suffer the most due to the inaccessibility to international markets. However, the WB sets favorable, conducive, and regulatory environments for investment and business growth. Moreover, it emphasizes good business practices that lead to fair competition among firms in the global market. As a resu...