IMF was formed in 1944 at the conference held in the United States. another main role of formation was to provide loans to the members. The loan provision to members of IMF was meant to boost trade between countries or achieve balance of payments. While WTO has increased access to international markets, IMF has assisted some countries achieve positive balances of payment. However, many have criticized the two institutions. For example, IMF has been criticized for formulation policies that make it difficult for some countries to access IMF loan. This report explains the role of WTO and IMF. It also explains the impacts of the two institutions have had on global businesses.
According to Morrison (2011), IMF and the World Bank are two institutions formed to provide funds. The two institutions are also called Bretton Woods Institutions because they were formed in Bretton Woods. The main aims of formation of IMF are to foster international monetary cooperation and expand international trade. The two objectives that led to the formation of IMF go on to remove the inequities that exist between members’ balance of payment. The goals that led to the formation of the institution are to be met by promoting exchange stability, maintenance of systematic exchange arrangements and circumvention of competitive exchange depreciation.
In addition, IMF also promotes the economy of the member states by providing funds for disposal and the funds assist states facing financial crisis. Internal Monetary Fund also provides assistance temporarily to countries (members) that tries to keep their currencies stable in times of financial downfalls. In addition, the institution assists states that have structural trade problems. This only happens when the states having structural trade problem seek help from the institution. However, the author noted that the institution could not save the country facing huge and continuous (Ramakrishnan & Zalduendo, 2006).