IC333 essay Ques 3 - Ques 3: Creation of organizations:...

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Ques 3: Creation of organizations: Near the conclusion of WWII, the Allied powers met in Bretton Woods, New Hampshire to set up how the world economy would be set up following the war. The allies wanted to ensure that there would not be a terrible relapse in the economy like their had been in the interwar period. The U.S. which had a relatively closed economy during the interwar period now realized that as the worlds economic and military superpower they would need to play a much larger role in increasing world markets and world economic growth. -system brings general stable currencies since the U.S. has set the exchange rate($35/ounce of gold) flexability since countries can devalue against the dollar. - Countries indirectly on the gold standard. -Tremendous growth in exports 1950-1973 GATT-cut tariffs by 1/3, also the creation of WB and IMF. Functions: WTO: -promotes trade negotiations & enforces free trade. Designed to supervise and liberalize international trade. The World Trade Organization deals with the rules of trade between nations at a near-global level; it is responsible for negotiating and implementing new trade agreements, and is in charge of policing member countries' adherence to all the WTO agreements -Current round of negotiations DOHA round: Development round IMF: IMF monitors currency through monetary stability, stabilizing exchange rates and
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IC333 essay Ques 3 - Ques 3: Creation of organizations:...

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