Trade agreements on tariffs and trade foster trade and the success of companies and organizations and how such companies can get involved in the global market. Alliances in the global market also promote trade through the elimination of barriers and restrictions of its members. These alliances exist in various regions and block depending on the interests with the aim of protecting the markets and the products.

The World Bank

This institution was established in 1946 through initiatives of industrialized nations with the aim of loaning money to underdeveloped and developing countries. The Bank fund infrastructural development and facilities through its funds or borrowings from member states, offering free advice and support to the loaned on the areas they fund. The World Bank also offers funding to private businesses and its member countries through its affiliations.

The International Monetary Fund

This institution was established in 1947 to promote trade among its member states through fostering financial corporations and elimination of barriers. The institution offer short term loans and foreign currencies to member states and play a major role in averting financial crisis by providing necessary information to countries. Global economic crisis pushed the International Monetary Fund to expand its loans to the developed and developing countries significantly due to the challenges faced.

Conclusion

The World Bank and the International Monetary Fund plays a major role in financing economies and infrastructure and averting global economic crises. The advice and information provided by these institutions get to be useful in the development of economies that are growing. Even though there may be restrictions as a result of their funding, the pooling of financial resources and relevant economic information is useful to global markets and development of economies.

Reference

Ferell, O.C, Hirt, Geofrey A., and Ferell, Linda. Business. New York: McGraw-Hill/Irwin. 2013