North American Free Trade ( Nafta ) And The International Monetary Fund

After Zambia gained political independence their economy was doing better. Their economy was surrounded around their primary natural resource, copper. As copper sales went up, new medical buildings and schools were built, they had a promising textile industry and things were looking up. Until an unexpected rise in the price of oil in tandem with the dropping prices of copper forced Zambia to borrow from the IMF and world banks at extremely high interest rates. Soon Zambia found itself in a mountain of unpayable debts and to repay creditors, spending was cut to education and health and other infrastructure projects. Eventually all of the progress they have made goes to waste as it can not be maintained. Foreign countries currently dictate the economic policy via structural adjustment, i.e. policies that “should” increase revenue and allow them to pay the loans off. This inevitably leads to a country that is so dependent on foreign aid because their own industries have been destroyed by foreign influences.

International development and underdevelopment are major issues in global society today. John Perkins’ book The New Confessions of an Economic Hit Man is a very critical account on the activities of private corporations such as MAIN and international financial institutions such as the World Bank and the International Monetary Fund and how many actions are based on self-interest, corruption and greed. The book does an exceptional job at giving us an insider’s perspective on why debt induced developing nations are in a constant state of underdevelopment from the corrupt actions of Economic Hit Men and their colleagues Jackals who deal with the dirty side of the business and political economics. Global economics and debt have

Lending institutions like the IMF and World Bank, which are central to economic globalization, offer loans to developing countries with conditions. These conditions were set in order to “restore or maintain balance of payments’ viability and macroeconomic stability, while setting the stage for sustained, high quality growth,” according to the textbook. The conditions of the loans the IMF provided to Jamaica included deregulation policies. These policies eventually proved to be dysfunctional in the context of the Jamaican economy and hindered the

“NAFTA was bold and controversial from the start. When first conceived, it was far from obvious that it would be possible given the circumstances of the times,”

This article hypnotized the success of trade agreement like North America Free Trade Agreement (NAFTA) is not solely depend on economic factors but also influenced by many other factors. One of the elements of culture is ethics, which heavily could influence the success of an organization. Therefore, ethical decision making in Canada, Mexico, and the United States who signed the NAFTA is examined. Based on seven cultural values, the authors found NAFTA countries’ cultural values is similar for Hofstede’s dimension, but different values in terms of attitude toward work, critical thinking, and perspective in human nature. Hood and Logsdon also enclosed the ethical issues that generally arise because of cultural factors. In international business,

However, although globalization has helped several countries, "in some developing countries, foreign aid and investments are not relieving widespread poverty, and policies forced by global institutions like the International Monetary Fund (IMF) and World Bank have created more harm than good, because the policies are based on models constructed by the developed countries and are not customized for each developing country 's situation" (2003).

Over the past several decades, the adoption of neoliberalism in the global economy has created instability within developing countries while first nations benefit from this organizing principle. Neoliberalism is defined as the practice of “freeing” the market through deregulation and limited government intervention (Smith). National and international governments implement neoliberal policies, often have underlying detrimental effects in the long run. Regulations enforced by international and intergovernmental organizations like the International Monetary Fund (IMF) and the World Trade Organization (WTO) allow for the privatization of markets to occur, keeping third world countries less economically developed. Neoliberal policies reinforce unequal power relationships among developed and developing countries that have been in existence since colonialism. Governments use economic mechanisms such as land reform, multilateral trade agreements, and structural adjustment programs (SAPs), which benefit the global elite. These unequal power relationships came from a legacy of colonial power throughout Latin America, Africa, and Southeast Asia, driven by the extraction of wealth and control of resources.

The purpose of this memorandum is for Monet’s Treats to consider doing business globally with Mexico first. This expansion will broaden its culture, expertise and ethics as well as entering into new, potentially profitable market segments. Monet’s Treats were created in 2005 in a small home kitchen in West Orange, New Jersey. Throughout the last ten years they have continuously experienced an annual five percent each year. After receiving a few inquires over the last 2 years between Mexico and Japan, Monet should fully consider expanding to Mexico as a stepping stone to full global expansion. Addressing the aspects of U.S. laws, legal and ethical implications that are involved with this decision will allow Monet’s Treats to properly

In the documentary, Christopher Guldbrandsen reveals how Glencore, which is a Swiss company, is making billions of money from copper mining in Zambia. As they do this, the country remains among the poorest in the world. Nobody will be surprised to learn that World Bank and IMF were involved in the business of the mines that later led to the current situation. Many people ask themselves as to when the African countries will stop taking pieces of advice from such institutions. The policies recommended by such institutions have been disastrous for Africa and all other developing nations in other continents. The practice results in a continuous transfer of wealth to the north from the south. Why is the IMF controversial? It is such a pity that the IMF has even tried pushing its policies on China.

The rise of globalization following WWII generated three important factors that define today’s world. McNeill and McNeill agree with Pollard, Rosenberg, and Tignor that multiple economic changes, such as the creation of financial institutions like the International Monetary Fund (IMF) contributed to the globalization of the world economy. Carter and Warren further this argument by claiming that globalization has caused shifts in the modern economy, namely the rise of Asian economic powers. However, all three historians agree that the rise of globalization goes hand in hand with the rise of inequality in today’s world. Gaps in power, wealth, and access to information have only widened due to the trend of globalization. The final key factor defining our world today are the ongoing processes affecting development countries. McNeill and McNeill argue similarly to Carter and Warren that the end of imperialism generated new nations who quickly realized the free market was a pathway to stability. However, Pollard et al. and McNeill and McNeill place importance on financial institutions like the IMF forcing developing nations to reform their economies to be subservient to the world’s economy. Together, these historians argue that the trend of globalization following WWII caused factors like the modern global economy, the rise in inequality, and the development of new, decolonized nations to be key determiners in the world today.

The three major international economic institutions are the International Monetary Fund (IMF), the World Bank and the World Trade Organization; this book mainly focuses on the IMF and the World Bank, due to the author’s first-hand experience with both institutions. The IMF, a public institution built as a guiding hand for economic stability around the world, has brought false

To begin, cities within the global south are more likely to need aid from the IMF. The United States currently holds 1/3 of the votes within the IMF, as a result the decision making power over nations within the global south rest in the hands of the western world. This dynamic is problematic because the IMF’s, SAP’s programs only add to further economic and social resource depletion within developing cities. With little to none voting influence from persons within the global south, the “west” through the IMF will continue structuring loans from an “outsider” perspective. As an “outsider” the west is given control over people and resources in the developing world.

Since many borrowings of those Third World countries are indexed to short-term interest, the rapid speed of rising in the world interest rate in 80s enlarged the interest margin of those countries debt. In an ordinary sense, the loans from governments and international lending organizations were considered priorities when it comes to returning the debt. However, the private banks are the one who keeps pressing on Third World countries to return debts. Meanwhile, Organizations like IMF (International Monetary Fund) acted like the world’s debt enforcers to step in to insist that those developing countries must pay the debts and impose

International Monetary Fund and The World Bank, though has a good purpose of their existence, they have come under lots of criticisms as to how they use the leverage of being in a position of helping poor countries to either recover from economic collapse or give them debt relief and economic boost from loans they give out to them to impose policies and condition that those poor countries has to implement. These loan conditions and policies structured by these international financial power institutions are geared towards moving resources from the poor countries to the rich western countries. The end result is creating a situation where the poor countries sunk into more economic suicidal condition in which

As an outcome of neoliberalism circumstances set by global institutions, such as the World Bank and International Monetary Fund (IMF), many nations have been in debt and in poverty since they