THE CONTEMPORARY WORLD

The Market Integration

Activity Sheet No. 3

Name: _Karl Niño Simbajon _ Date: Mar 30 2023___________

Year and Course: _BSIS 2________ Score: ________________________

1. First column presents the role of global financial institutions according to Stiglitz.
2. In the second column you are to provide a one sentence discussion of your
understanding to the importance of each role.
*Between 20-30 words discussion for each of the role.

Role of Financial Institutions Importance

1. Financial restructuring
2. Corporate governance
3. Preventing Crises by
Controlling Capital Flows
4. The importance and
limitations of
information
5. The Role of the World
Bank
Macroeconomic policies focus on managing the overall
performance of an economy, while microeconomic policies
target specific industries or markets. Both are crucial for
achieving economic stability and growth.
Corporate governance is important because it ensures that
companies operate in an ethical and transparent manner,
maintain accountability to stakeholders, and minimize the
risk of financial and reputational damage.
Preventing crises by controlling capital flows is important
because uncontrolled flows can lead to excessive
speculation, asset bubbles, and currency volatility, causing
economic instability and financial crises.
Information is crucial for decision-making, problem-
solving, and knowledge acquisition, but it also has
limitations such as potential biases, inaccuracies, and
information overload.
The World Bank plays a crucial role in providing financial
and technical assistance to developing countries,
promoting economic growth, reducing poverty, and
improving living standards.