POWER School of Technology Inc.

Subject Code/Description: International Business and Trade

Year/Course: 3rd year MM/ FM/HR/AIS
Teacher : MR. ANGELO A. DELA ROSA
Contact Details: 09511831676; gheldelarosa17@gmail.com

Activities:

1. What are the roles of the following Organizations in promoting Free Trade?

a. International Monetary Fund (IMF)

The IMF has played an important role in the expansion of international trade. It
serves as a repository for all of the member countries' currencies. A borrowing
country can borrow another country's currency from this reservoir. It makes foreign
exchange loans to member countries in order to finance current transactions. It also
offers technical guidance on monetary and fiscal issues. It conducts and publishes
research studies. This multilateral assistance assists members in resolving trade
issues, thereby promoting international trade.
b. World Bank (WB)
The World Bank's primary function is to make long-term loans to developing
countries in order to help them develop. These loans fund a wide range of
investments in education, health, infrastructure, agriculture, and environmental and
natural resource management.
We can undoubtedly say that the World Bank has made significant efforts to
support free-market capitalism, and some of its policies appear to have benefited
some developing countries, such as IDA graduates.
c. General Agreement on Tariffs and Trade (GATT)
GATT is credited with significantly expanding global trade, primarily through tariff
reductions. GATT's fundamental underlying principle was that trade should be free
and equal. In other words, countries should open their markets to all members
equally, with no discrimination or preferential treatment.

2. What are the advantages and disadvantages of having a trading partner/partners?

The advantages and disadvantages of a trading partnership are:
Advantages
a. Less formal, with fewer legal responsibilities
b. It is simple to begin.
c. Sharing the load
d. Knowledge, skills, experience, and contacts are all available.
e. Improved decision-making
f. Control and ownership are combined.
g. More capital, more partners
h. Potential collaborators
i. Profits are easily accessible.
Disadvantages
a. Liability is limitless.
b. Presumption of insignificance
c. Capital access is limited.
d. Differences and confrontation are a possibility.

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 POWER School of Technology Inc.
Subject Code/Description: International Business and Trade
Year/Course: 3rd year MM/ FM/HR/AIS
Teacher : MR. ANGELO A. DELA ROSA
Contact Details: 09511831676; gheldelarosa17@gmail.com
e. Decision-making takes longer and is more complicated.
f. Profits must be distributed.
g. Personal requirements are high.
h. Business Development Restraints

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