ACTIVITY 3: COMPARE AND CONTRAST THE FOLLOWING

WORLD BANK AND INTERNATIONAL MONETARY FUND

As we all know, both World Bank and International Monetary Fund (IMF) are part of the Bretton Wood
agreement in 1945, however, they do not play the same role. The IMF presides the resilience of the
world's monetary system, monitors economic activity, offers members policymaking tools and analysis,
and also provides loans to member countries. And on the other side, the World Bank’s purpose is to
diminish poverty by giving aid to mid and low-income ranged countries, accomplishes its goals through
technical and financial support that enables countries to implement specific projects, such as building
health canters or making clean water available.

Furthermore, IMF keeps track of the global economy and those of its member countries. The group
employs a number of economists who monitor member countries' economic health. Each year, the IMF
provides each country with an economic assessment. While The World Bank's purpose is to aid long-
term economic development and reduce poverty in economically developing nations. It accomplishes
this by making technical and financial support available. The bank initially focused on rebuilding
infrastructure in Western Europe following World War II and then turned its operational focus to
underdeveloped countries. 4

PREFERENTIAL AGREEMENT AND FREE TRADE AGREEMENT

Both Preferential and Free trade agreements talk about tariffs, but A free trade agreement
stipulates free (cero tariff) trade between countries/states. For most countries, international trade
is regulated by unilateral barriers of several types, including tariffs, non-tariff barriers, and outright
prohibitions. Trade agreements are one way to reduce these barriers, thereby opening all parties to
the benefits of increased trade in practice, this also includes broader provisions, such as
agreements on the movement of capital, goods, and people (such as NAFTA). A free trade
agreement will also mostly include all or a large portion of goods. In contrast, a preferential trade
agreement is much less broad covering preferential (i.e., low or lower other countries) tariffs for a
set of products or services. A preferential trade agreement can also just be unilateral or for a
particular number of years, etc

In most modern economies the possible coalitions of interested groups are numerous, and the
variety of possible unilateral barriers is great. Further, some trade barriers are created for other,
non-economic reasons, such as national security or the desire to preserve or insulate local culture
from foreign influences. Thus, it is not surprising that successful trade agreements are very
complicated. Some common features of trade agreements are reciprocity, a most-favored-nation
(MFN) clause, and national treatment of non-tariff barriers.

EUROPEAN INTEGRATION AND ASEAN INTEGRATION

We all know that in terms of Globalization. Global integration is the degree to which the company is able
to use the same products and methods in other countries. With this, Local responsiveness is the degree
to which the company must customize its products and methods to meet conditions in other countries.
When we talk about European integration it is the process of industrial, economic, political, legal, social,
and cultural integration of states wholly or partially in Europe or nearby. European integration has
primarily come about through the European Union and its policies. For integration with the EU, see the
Foreign Relations of the European Union. European integration is the process of industrial, economic,
political, legal, social, and cultural integration of states wholly or partially in Europe or nearby. European
integration has primarily come about through the European Union and its policies. On the other side,
ASEAN integration This union aims to help strengthen and stabilize each country’s economic growth and
development. Basically, the ASEAN union was created to help Southeast Asian countries to develop
Economic growth, Socio-cultural development, and Political-Security. Thus, both integration offers help
but it is just for its participating countries.