International Economic Environment and evolution of International Financial Institutions.
World War II ± 1939 to 1945
The WW2 began with invasion of Poland by Germany on 01.09.1939. Almost entire Europe was conquered by Germany in 1941. Britain and the C¶wealth remained the only major force continuing the fight against the Axis. In December 1941, Japan, which had already been at war with China since 1937, and which aimed to establish a dominance over East Asia and South East Asia, attacked the Pearl Harbor in US.
The next day the United States declared war on Japan resulting in their entry into World War II. For six months, the United States had made use of intense strategic fire-bombing of 67 Japanese cities. The U.S. dropped the nuclear weapon on the city of Hiroshima on Monday, August 6, 1945, followed by the detonation of "Fat Man" over Nagasaki on August 9. Six days after the detonation over Nagasaki, on August 15, Japan announced its surrender ending WW2
The Bretton Woods Conference - 1944
The BWC was a gathering of 730 delegates from all 44 Allied nations. The conference was held from 1-22 July 1944, when the agreements were signed to set up the International Bank for Reconstruction and Development (IBRD), the General Agreement on Tariffs and Trade (GATT), and the International Monetary Fund (IMF). As a result of the conference, the Bretton Woods system of exchange rate management was set up, which remained in place until the early 1970s.
General Agreement on Tariffs and Trade
The General Agreement on Tariffs and Trade (GATT) was negotiated during the UN Conference on Trade and Employment and was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO). GATT was formed in 1949 and lasted until 1993, when it was replaced by the World Trade Organization in 1995. The original GATT text (GATT 1947) is still in effect under the WTO framework, subject to the modifications of GATT 1994.
NO. OF COUNTRIES
Signing of GATT, 45000 tariff concessions affecting $10 billion of trade Countries exchanged some 5000 tariff concessions Countries exchanged 8700 tariff concessions, cutting the 1948 tariff levels by 25% $2.5 billion in tariff reductions and admission of Japan.
Geneva 1956 II
NO. OF COUNTRIES
Tariff concessions worth $4.9 billion of world trade Tariff concessions worth $40 billion of world trade Tariff reductions worth more than $300 billion dollars achieved
NO. OF COUNTR IES
The round led to the creation of WTO, and extended the range of trade negotiations, leading to major reductions in tariffs (about 40%) and agricultural subsidies, an agreement to allow full access for textiles and clothing from developing countries, and an extension of IPR. Tariffs, non-tariff measures, agriculture, labor standards, environment, competition, investment, transparency, patents, etc.
World Trade Organization
The WTO came into existence in 1995 as a successor to GATT. It has more than 150 member countries and other 30 countries are negotiating membership. WTO agreements have been ratified in all member countries¶ parliaments.
Functions of WTO
Facilitate the implementation, administration and operation of the Trade Agreements. Forum for further negotiations. Settlement of disputes among member countries. Periodic reviews of trading policies of members. Provide assistance to developing countries through technical assistance and training programs.
Protection of intellectual property rights (IPR). Covers the procedural aspects of export-import such as import restrictions, customs valuation,...
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