The World Bank was created following the ratification of the United Nations Monetary and Financial Conference|Bretton Woods agreement. The concept was originally conceived in July 1944 at the United Nations Monetary and Financial Conference. Two years later, the Bank issued its first loan: US$250 million to France for post-war reconstruction, the main focus of the Bank's work in the early post-World War II years. Over time, the "development" side of the Bank's work has assumed a larger share of its lending, although it is still involved in post-conflict reconstruction, together with reconstruction after natural disasters, response to humanitarian emergencies and post-conflict rehabilitation needs affecting developing and transition economies. There were criticisms of the results of the World Bank's "development schemes" leading to corruption and widespread exploitation by the corporations who are given monopolies of developing nations' resources.
The World Bank is one of the two Bretton Woods Institutions which were created in 1944 to rebuild a war-torn Europe after World War II. Later, largely due to the contributions of the Marshall Plan, the World Bank was forced to find a new area in which to focus its efforts. Subsequently, it began attempting to rebuild the infrastructure of Europe's former colonies. Since then it has made a variety of changes regarding its focus and goals. From 1968-1981 it focused largely on poverty alleviation. In the 1980s and 1990s its main focus was both debt management and structural adjustment.
The Bank’s mission is to aid developing countries and their inhabitants to achieve development and the reduction of poverty, including achievement of the MDGs, by helping countries develop an environment for investment, jobs and sustainable growth, thus promoting economic growth through investment and enabling the poor to share the fruits of economic growth. The World Bank sees the five key factors necessary for economic growth and the creation of an enabling business environment as:
1. Build capacity: Strengthening governments and educating government officials.
2. Infrastructure creation: implementation of legal and judicial systems for the encouragement of business, the protection of individual and property rights and the honoring of contracts.
3. Development of Financial Systems: the establishment of strong systems capable of supporting endeavors from micro credit to the financing of larger corporate ventures.
4. Combating corruption: Support for countries' efforts at eradicating corruption.
5. Research, Consultancy and Training: the World Bank provides platform for research on development issues, consultancy and conduct training programs (web based, on line, tele-/ video conferencing and class room based) open for those who are interested from academia, students, government and non-governmental organization (NGO) officers etc.
The Bank obtains funding for its operations primarily through the IBRD’s sale of AAA-rated bonds in the world’s financial markets. The IBRD’s income is generated from its lending activities, with its borrowings leveraging its own paid-in capital, plus the investment of its "float". The IDA obtains the majority of its funds from forty donor countries who replenish the bank’s funds every three years, and from loan repayments, which then become available for re-lending. –
The World Bank is active in the following areas :
1. Agriculture and Rural Development
2. Conflict and Development
3. Development Operations and Activities
4. Economic Policy
8. Financial Sector
11. Health, Nutrition and Population
13. Information and Communication Technologies
14. Information, Computing and Telecommunications
15. International Economics and Trade
16. Labor and Social Protections
17. Law and Justice
18. Macroeconomic and Economic Growth
20. Poverty Reduction
22. Private Sector
23. Public Sector Governance
24. Rural Development
25. Social Development
26. Social Protection
29. Urban Development
30. Water Resources
31. Water Supply and Sanitation
Source : Wikipedia
Business economics is that part of economic theory which focuses on business enterprises and inquires into the factors contributing to the diversity of organizational structures and to the relationships of firms with labour, capital and product markets. Business Economics is concerned with economic issues and problems related to business organization, management and strategy. Issues and problems such as the following:
• an explanation of why firms emerge and exist
• why they expand: horizontally, vertically and spacially
• the role of entrepreneurs and entrepreneurship
• the significance of organizational structure
• the relationship of firms with employees, the employees, the providers of capital, the customers, the government
• the interactions between firms and the business environment.
The term Business Economics is used in a variety of ways. Sometimes it used as synonymously with - Industrial Economics - Industrial Organisation - Managerial Economics - Economics for Business. Industrial Economics is the mostly closely over-lapping of these terms whilst there may be more substantial differences with Economics for Business and Managerial Economics. One view of the distinctions between these would be that Business Economics is wider in its scope than Industrial Economics in that it would be concerned not only with "Industry" but also businesses in the service sector and that it also takes seriously the insights of the "business strategy" literature. Economics for business looks at the major principles of economics but focuses on applying these economic principles to the real world of business. Managerial economics is the application of economic methods in the managerial decision-making process.
Many universities offer courses in Business Economics and offer a range of interpretations as to the meaning of Business Economics. The University of East London defines the subject matter of its degree as looking at the application of economic theory to business activities and organizations arguing that "In general terms, Business Economics deals with issues such as: the ways markets work; what firms do, what their motives are, how they perform; and the role of government in regulating business activity". The program at Harvard University uses economic methods to analyze practical aspects of business, including business administration, management, and related fields of economics. The University of Miami defines Business Economics as involving the study of how we use our resources for the production, distribution, and consumption of goods and services. This requires business economists to analyze social institutions, banks, the stock market, the government and they look at problems connected with labour negotiations, taxes, international trade, and urban and environmental issues. Courses at the University of Manchester interpret Business Economics to be concerned with the economic analysis of how businesses contribute to welfare of society rather than on the welfare of an individual or a business. This is done via an examination of the relationship between ownership, control and firm objectives; theories of the growth of the firm; the behavioural theory of the firm; theories of entrepreneurship; the factors that influence the structure, conduct and performance of business at the industry level.
Resumed from Wikipedia.
The General Agreement on Tariffs and Trade (typically abbreviated 'GATT') was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO). GATT was formed in 1947 and lasted until 1994, when it was replaced by the World Trade Organization. The Bretton Woods Conference had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II. As governments negotiated the ITO, 15 negotiating states began parallel negotiations for the GATT as a way to attain early tariff reductions. Once the ITO failed in 1950, only the GATT agreement was left.
The GATT's main objective was the reduction of barriers to international trade. This was achieved through the reduction of tariff barriers, quantitative restrictions and subsidies on trade through a series of agreements. The GATT was a treaty, not an organization. The functions of the GATT were taken over by the World Trade Organization which was established during the final round of negotiations in early 1990s.
The history of the GATT can be divided into three phases: the first, from 1947 until the Torquay Round, largely concerned which commodities would be covered by the agreement and freezing existing tariff levels. A second phase, encompassing three rounds, from 1959 to 1979, focused on reducing tariffs. The third phase, consisting only of the Uruguay Round from 1986 to 1994, extended the agreement fully to new areas such as intellectual property, services, capital, and agriculture. Out of this round the WTO was born.
GATT signatories occasionally negotiated new trade agreements that all countries would enter into. Each set of agreements was called a round. In general, each agreement bound members to reduce certain tariffs. Usually this would include many special-case treatments of individual products, with exceptions or modifications for each country.
GATT held a total of 8 rounds.
1. Annecy Round - 1950
2. Torquay Round - 1951
3. Geneva Round - 1955-1956
4. Dillon Round - 1960-1962
5. Kennedy Round - 1964-1967
6. Tokyo Round - 1973-1979
7. Uruguay Round - 1986-1993
Resumed from Wikipedia
In economics, an import is any good (e.g. a commodity) or service brought into one country from another country in a legitimate fashion, typically for use in trade. It is a good that is brought in from another country for sale. Import goods or services are provided to domestic consumers by foreign producers. An import in the receiving country is an export to the sending country.
Imports, along with exports, form the basis of international trade. Import of goods normally requires involvement of the Customs authorities in both the country of import and the country of export and are often subject to import quotas, tariffs and trade agreements. when the "imports" are the set of goods and services imported, "Imports" also means the economic value of all goods and services that are imported. The macroeconomic variable I usually stands for the value of these imports over a given period of time, usually one year.
Balance of trade
A country has demand for an import when domestic quantity demanded exceeds domestic quantity supplied, or when the price of the good (or service) on the world market is less than the price on the domestic market.
The balance of trade, usually denoted NX, is the difference between the value of the goods (and services) a country exports and the value of the goods the country imports.
NX = X - I, or equivalently I = X - NX
A trade deficit occurs when imports are large relative to exports. Imports are impacted principally by a country's income and its productive resources. For example, the US imports oil from Canada even though the US has oil and Canada uses oil. But consumers in the US are willing to pay more for the marginal barrel of oil than Canadian consumers are, because there is more oil demanded in the US than there is oil produced.
In macroeconomic theory, the value of imports I can be modeled as a function of the domestic absorption A and the real exchange rate σ. These are the two largest factors of imports and they both affect imports positively.
I = I(A,σ)
There are two basic types of imports: 1. Industrial and consumer goods, 2. Intermediate goods and services.Companies import goods and services to supply to the domestic market at a cheaper price and better quality than competing goods manufactured in the domestic market. Companies import products that are not available in the local market.There are three broad types of importers: 1. Looking for any product around the world to import and sell. 2. Looking for foreign sourcing to get their products at the cheapest price. 3. Using foreign sourcing as part of their global supply chain.
Of many researches at various state, appear efforts behavioral form (monopoly) one that insanitary, disadvantage on economic aspect and also another aspect:
1. Distinguished monopolistic force as ability to determine price will disadvantage people and producer because they shall pay product at the price that tall than if market in a state competitive.
2. Production don't walk efficiently since firm have push to reduce market supply for get tall price. Increase resulting production market monopolistic will inferior than if perfect ala walking market.
3. Economics as a whole will experience deadweight losses of production and also consumption flank.
4. Its appearance is cost which unproductive, as advertising expense, lobbying for meeting production requisition. It is done that firm one will got production capacity pock that is targeted so finally will emerge greater market image.
Anti monopoly can materialize if market in condition perfect emulation, but has to measure up which is: total producer and there are many consumer, no. barrier divides who just for manse and sticking out industry, factors moving freedom industry, and perfect information to prevent adverse selection and hazard's moral.
Acquired monopoly position outrivals healthy not as problem, by condition of investment can come in to who only. And so do for party what does get monopoly natural's ala, are not because government application, but since no that brave and can do. But, in common monopoly will give negative's impact because will evoke diffraction of market in shaped inefficiency production Because no control from industry competitor