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)