Agencies that Facilitate International Flows
International Monetary Fund
Major Objectives of the IMF
• promote cooperation among countries on international monetary issues,
• promote stability in exchange rates,
• provide temporary funds to member countries attempting to correct imbalances of
international payments,
• promote free mobility of capital funds across countries,
• promote free trade. It is clear from these objectives that the IMF’s goals encourage increased
internationalization of business.
Its compensatory financing facility (CFF) attempts to reduce the impact of export instability on
countries. Financing is measured in special drawing rights (SDRs)
World Bank — (International Bank for Reconstruction and Development)
• Major Objective — Make loans to countries to enhance economic development.
• Structural Adjustment Loans (SALs) are intended to enhance a country’s long-term economic
growth.
• Funds are distributed through cofinancing agreements:
o Official aid agencies
o Export credit agencies
o Commercial banks
World Trade Organization (WTO)
• Major Objective — Provide a forum for multilateral trade negotiations and to settle trade disputes
related to the GATT accord.
• Member countries are given voting rights that are used to make judgments about trade disputes
and other issues.
International Finance Corporation (IFC)
• Major Objective — promote private enterprise within countries.
• Provides loans to corporations and purchases stock
International Monetary Fund
Major Objectives of the IMF
• promote cooperation among countries on international monetary issues,
• promote stability in exchange rates,
• provide temporary funds to member countries attempting to correct imbalances of
international payments,
• promote free mobility of capital funds across countries,
• promote free trade. It is clear from these objectives that the IMF’s goals encourage increased
internationalization of business.
Its compensatory financing facility (CFF) attempts to reduce the impact of export instability on
countries. Financing is measured in special drawing rights (SDRs)
World Bank — (International Bank for Reconstruction and Development)
• Major Objective — Make loans to countries to enhance economic development.
• Structural Adjustment Loans (SALs) are intended to enhance a country’s long-term economic
growth.
• Funds are distributed through cofinancing agreements:
o Official aid agencies
o Export credit agencies
o Commercial banks
World Trade Organization (WTO)
• Major Objective — Provide a forum for multilateral trade negotiations and to settle trade disputes
related to the GATT accord.
• Member countries are given voting rights that are used to make judgments about trade disputes
and other issues.
International Finance Corporation (IFC)
• Major Objective — promote private enterprise within countries.
• Provides loans to corporations and purchases stock
