Intergovernmental Organizations: World Trade Organizations and International Monetary Fund

International Organizations
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International Organizations
Introduction
Intergovernmental organizations (IGOs) are among the most important hallmarks of globalization as they facilitate cross-border interactions among different countries to help realize mutual global objectives. One of the aspects of globalization in which the IGOs have had a significant impact is international trade. International trade has been on the rise in recent years, primarily due to globalization and the trade treaties signed among different countries to promote trade by removing barriers to international trade. Multinational companies and NGOs are at the forefront of international trade.
The three main perspectives of international trade include the Liberals, mercantilists, and structuralists, who have different views and opinions regarding how trade should be conducted on the international scene. For liberalists, international trade should be conducted using the ideas of thinkers such as the ideas of Smith and Ricardo. They give various conditions within which the trade can flourish in the international arena. In Ricardo's theory of comparative advantage, he provided liberal ideas about how trade can flourish between countries using their strengths and weakness in terms of their production of goods and services. According to both Ricardo and Smith, global trade should not be based on who can produce the most of any given product since this can be disadvantageous for businesses due to the limitations of scarce resources. This limitation means that no particular country can produce as much as it wants of all goods and services; opportunity cost must therefore be considered. Absolute advantage cannot, therefore, be relied on as a policy for international trade. On the other hand, comparative advantage is the best policy because it allows countries to produce whatever they can produce efficiently and then get the other products from other countries or businesses that also have a comparative advantage in producing such products and services.
International organizations such as the World Trade Organization (WTO) and the International Monetary Fund (IMF) have been at the forefront of policy development in the area of international trade while also offering support to governments to help them build their competitive advantages by enhancing their local industries. This report focuses on the World Trade Organization (WTO) and the International Monetary Fund (IMF) as the two major organizations involved in fostering good governance, development, and effective policies in international trade. The report analyzes and compares the two organizations in terms of their decision-making processes, enforcement, and accountability.
Defining the Criteria
This report will use three main perimeters of decision-making, enforcement, and accountability to effectively compare the two intergovernmental organizations by highlighting their strengths and weaknesses.
Decision Making
The decision-making process in intergovernmental organizations is important because such decisions have far-rea...