Bretton Woods system

In economics, some classical liberals believe that ‘’an unfettered market’’ is the most efficient mechanism to satisfy human needs and channel resources to their most productive uses. The minimal government advocacy of an ‘’unregulated free market’’ is founded on an ‘’assumption about individuals being rational, self-interested and methodical in the pursuit of their goals. Adam Smith was not an advocate of pure capitalism. Adam Smith allowed for many exceptions to a strictly free-market economy.

( I ) The USA as Unipolar state : The US after the Cold War, became the unipolar power in the world. The unipolar system possesses only one great power with no competition. If a competitor emerges, the system can no longer be called unipolar. With the end of the Cold War, US emerged as the Unipolar superpower which also ended the traditional “East vs West’’ conflict. The longest economic expansion in modern U.S. history was seen after the cold war, in the 1990s. Originating in US defense networks

Foreign policy is a historical phenomenon, playing an integral role in international relations theory; it is defined as how a state should interact with other states, as well as non-state agents, in order to achieve a goal. Foreign policy can be distinguished from general policy through three preconditions: the ontic precondition, institutional precondition and finally, the public precondition. Walker’s Inside/ Outside argues that in the period from the fifteenth and seventeenth century, there emerged

to certain events and outcomes in order to recreate or prevent the same outcome from occurring. After all, history indeed repeats itself, and politics and globalization are no different. Hegemons rise and fall, crises and wars breakout, political systems build-up and collapse, all in all decisions are made that will lead future outcomes that dictate not only the domestic landscape but also the international landscape as well. The modern history of globalization and integration has been tumultuous

which caused price inflation in many other countries. Manufacturing and transport became costlier, so profits dropped, and unemployment rose in many countries because of the inflated price of production, so enormous pressure was heaped on the welfare systems and many investors lost confidence (Martell, 2010). Another prime example of global economic interdependency was the financial crises that occurred in the United States during the latter stages of 2007. Various factors, including the sub-prime

THE INTERNATIONAL MONETARY FUND (IMF) The IMF was set up during the Second World War in the year 1944. It started operation in 1947 and it has been working with the UNO since. Its headquarters is in Washington D.C in America. IMF provides short term loans to countries having problems of balance of payments. It also provides technical advice to its members and ensures free flow of trade by removing all trade restrictions. It establishes and maintains stable exchange rate between member countries

World Bank and IMF The birth of World Bank and IMF can be traced to the 1944 Bretton Wood meeting in US which brought over 700 delegates from 44 countries together to “establish a framework for a global system of financial and monetary management” to prevent a repeat of the Great Depression of 1930s (Moyo, 2009, p. 10). Three organizations were founded to achieve this goal: International Bank for Reconstruction and Development (World Bank), International Monetary Fund (IMF), and International Trade

The Global Economy and International Trade What Is International Trade International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history, its economic, social, and political importance has been on the rise in recent centuries. Increasing international trade is crucial to the continuance

also aiming to create economic peace and stability in the world through a multilateral system. This is based and applied to member states, currently 162 countries, that have consented and ratified the rules of the WTO in their individual countries. Simply put, these documents act as contracts that provide the legal framework for conducting business among nations, integrating into a country 's domestic legal system, therefore, applying to local companies and nationals in the conduct of business internationally

Spencer Snodsmith Assignment 3 and Final Paper Assignment 3: 1. John Maynard Keynes is one of the most recognized economists around. John Keynes was born on June 5, 1883 in Cambridge, England. His father was an economist as well and worked at the University of Cambridge. His mother was a social worker. Keynes at the age of eighteen attended Eton College where he received a B.A. in Mathematics in 1904. I wasn’t until two years after, that his career really began. In 1906, Keynes took a position