IBECONUAHS - JOHN - Role of International Financial Institutions

Commodity-

A marketable item produced to fulfill peoples wants or needs.
Market treats it equivalently no matter who produces it.
Examples: Petroleum and copper have universal prices that fluctuate daily due to global supply and demand.

Commodity agreement-

An agreement among producing and consuming countries to improve the functioning of the global market for a commodity.
May be administrative, providing information, or economic influencing world price, usually using a buffer stock to stabilize it.

The international monetary fund (IMF)-

A group of 188 countries that all contribute to a pool of money through a quota system.
Countries with monetary imbalances can borrow from the pool on a temporary basis.
They also mediate international trade and foster global monetary cooporation.

The world bank-

Loans money to developing countries for capital programs.
Promote foreign investment, capital investment, and international trade.

Private Sector bank-

Banks in which most of the risk is held by private individuals/stockholders not by the government.

Non-governmental Agencies-

A organization that works independently from any government.
need to be a non-profit business
Work to improve environment, development, work advocacy, etc
Examples: Red cross, Amnesty international, Greenpeace.

Multinational companies-

A company that has a base in one country but operates in more than just the home country
Manages production or provides services in more than one country
Examples: adidas, Microsoft, Mcdonalds.

Transnational companies-

The same as Multinational companies only they do not associate themselves with one home country.
Examples: General electric, Exxon Mobil, Vodaphone.