GE 7 – THE CONTEMPORARY WORLD
ACTIVITY NO. 2
Name: AMATOSA, CHRYSTALYN G.
Date: MARCH 18,2022
Year and Section: BSCE-4A
Score: ___________________________
CONTEMPLATE.
Let us think about how economic globalization affects the community. The important
institutions related to global economy are provided below. Select one of two concepts of
words.
◦ Discuss what the particular concepts or words mean to you or what you know
about them?
◦
What is the impact to their community?
Answer:
A. International Monetary Fund (IMF)
The IMF is composed of member countries that each contribute capital, or money,
and agree to adhere to IMF policies in exchange for membership benefits. The IMF’s role
is to provide lending to member countries in order to achieve these goals. The IMF is the
largest institution in the world that is solely dedicated to the promotion of global
economic cooperation and stability. It has an impact to the country, such as Helping to
restore financial stability in countries that are currently experiencing economic difficulty.
The IMF also works to ensure that international trade is fair, equitable, and free from
interference. This helps to promote economic growth and development around the globe.
The IMF is an important institution because it is the only international organization that
is solely dedicated to the promotion of global economic cooperation and stability. The
IMF also works to ensure that international trade is fair, equitable, and free from
interference.
The goal of the IMF is to provide member countries with access to financing in times of
economic crisis. The IMF provides this access by issuing loans to member countries on
preferential terms, primarily through the purchase of government bonds. The IMF also
provides other services to its member countries, including the monitoring of economic
policies and the provision of technical assistance. The IMF has had a significant impact
on the economies of its member countries. The IMF provides member countries with
access to financing in times of economic crisis. The IMF purchases government bonds on
favorable terms, which helps to reduce the country's debt burden. By providing member
countries with access to financing, the IMF helps to stabilize the international financial
system.
B. G8 and G20
The G8 and G20 are organizations of nations that meet as an advisory group to
examine current economic and political issues and to translate the forum's views into
national legislative rules. The G8 is made up of the world's eight major economies and is
largely concerned with discussing and resolving important international economic issues
such as global financial reform, bailing out states, and developing worldwide regulatory
policy. The G20 is made up of the world's twenty major economies and is primarily
concerned with discussing and resolving important worldwide political issues such as
terrorism, immigration, and international war. Both organizations serve as a forum for
the world's most powerful nations to debate and resolve international issues and
problems.
The Group of Eight, better known as the G8, is an international forum for the
world’s foremost economies. The G8 nations are: United States, United Kingdom,
Germany, France, Italy, Russia, Canada, and Japan. The G20, which is the current
incarnation of the G8, is an international forum for the world’s 19 largest economies. The
G20 nations are: United States, United Kingdom, Germany, France, Italy, Russia, Canada,
Japan, Brazil, Argentina, India, China, South Korea, Mexico, Australia, Indonesia,
Turkey, Saudi Arabia, South Africa, and European Union
The G8 and G20 have a significant impact on the lives of people around the world
because they serve as a forum for some of the world's most powerful nations to discuss
and resolve topics of international importance. Because of their power and influence, the
decisions made by the G8 and G20 have the potential to positively impact the lives of
millions of people around the world. The G8 and G20 are able to accomplish this feat
because they are composed of nations that are actively involved in the global community.
The G8 and G20 have helped to set the agenda for global economic and political issues,
and their decisions have had a significant impact on the economies and politics of their
respective countries. Each member nation of the G8 and G20 is committed to being an
active participant in the international community, which allows the G8 and G20 to have
a significant impact on global issues.
______________________________________________________________________________
International Monetary Fund (IMF)
• The IMF is an international organization of 183 member countries to promote
international monetary cooperation and exchange stability; to foster economic
growth and high employment; and to provide short-term financial assistance to
countries to help ease balance of payments adjustments (IMF, 2019).
International Financial Institutions (IFIs)
◦ The generic name given to all financial institutions operating on an international
level, ranging from development banks, such as the World Bank and European
Bank for Reconstruction and Development (EDB), and monetary authorities, such
as the International Monetary Fund.
◦ These organizations give loans to governments for large-scale projects, restructuring
and balance of payments on condition that they make specific changes that IFIs
believe will boost the economic growth (Shangquan, 2000)
Transnational Corporations
◦ “Enterprise that engages in activities which add value (manufacturing, extraction,
services, marketing, etc.) in more than one country (UCTC, 1991).”
G8 and G20
• Group of nations that serve as an advisory organization that discuss current
economic and political problems and transfer the ides form the forum in national
legislative regulations (Weiss, 2018).
Global Civil Society
• Either composed of individuals or groups of individuals disadvantaged by the
effects of the globalization of the world economy, they protest and seek
alternatives while on the other hand, global social movement constituting a basis
for an alternative to a new world order (Gherghel, n.d.; Keane, 2003)