International Trade

WTO, IMF, World Bank, and their roles

Introduction

  1. The World Trade Organization (WTO), International Monetary Fund (IMF), and World Bank are key international organizations in global economic governance.
  2. They play distinct but complementary roles in facilitating international trade, economic stability, and development.

World Trade Organization (WTO)

  1. The WTO was established in 1995, succeeding the General Agreement on Tariffs and Trade (GATT).
  2. It aims to promote free

Exchange rates: Fixed, floating, and managed

Introduction

  1. Exchange rate is the value of one country's currency in relation to another country's currency.
  2. It plays a vital role in international trade, influencing exports, imports, and foreign investments.
  3. There are three main types of exchange rate systems: Fixed, Floating, and Managed.

Fixed Exchange Rate

  1. In a fixed exchange rate system, the currency value is pegged to a specific value of another currency or a basket of currencies.
  2. The cent

Balance of trade vs. balance of payments

Introduction

  1. The Balance of Trade (BOT) and the Balance of Payments (BOP) are key indicators of a country's economic health.
  2. Both are used to analyze a nation's international trade performance and its overall financial position.
  3. The BOT focuses specifically on the trade of goods, while the BOP provides a comprehensive view, including services, capital, and transfers.

Balance of Trade (BOT)

  1. The BOT represents the difference between a country's exports and
International Trade