If the IMF’s Executive Board did not provide the assistance, it was possible that the global economy would destabilize and adverse effects would be appeared for the Euro. Due to these circumstances, the IMF amended this criterion and permitted exceptional access even if there is not a high probability that the dept is
But after the civil war there were many changes which took place in United States and their wealth also increased. After World War II, the United States emerged as economically stable and prosperous country. American companies were growing rapidly and both major parties of World War II were committed for making Economic reforms and keep unemployment low. Therefore the United States led a system was developed called as Bretton Woods system to equally divide the share between the nations. The US dollar was made common currency for trade which made the United States a global leader and it was advantage for United States companies to do trade in their national currency.
a) Evaluate the European Monetary system. (12) The European Monetary System was an arrangement between European countries which tried to control the exchange rate by linking their currencies to one another. The main aim was to stabilize prices and exchange rate between European countries. European Monetary system archived stability of exchange rate and lower inflation rate. However, continued differences in economic growth rate between member countries lead to trade imbalances.
They claim that these organizations will make the world converge into a state much like the European Union. The IMF, the World Bank, the WTO, and the Anglo- American elite are being speculated as the prime makers of this new alliance. However, the EU comes with its set of compromises and consensus seeking behavior. Thus, there is a possibility that in the event of globalization hindering development, the EU alliance will fall. The EU functions on an optimization principle which assesses the costs and benefits of
Despite the EU and its sub-bodies have received authorities over certain areas from European states, the transfer has not been followed with democratic legitimacy, which can be defined with a federative structure based on majority rule and territorial representation. Instead, the delegation of powers from each member state has been conducted by a few elites mostly through negotiations and treaties, and citizens from each state have been persuaded by the elites to accept the outcomes. In other words, there has been an inevitable trade‐off between output legitimacy and input legitimacy, between an emphasis on government for the people and an emphasis on government by the people (Katz and Wessels, 1999). Therefore, the shift of powers from a national parliament weakens its democratic legitimacy due to transfer of parliamentary powers to a few illegitimate delegates of EU, who are not elected and fully accountable by its
A huge advantage is that the economy will provide customers with goods that they want and need at an acceptable price. The sole reason is because people are willing to pay extra for what they want. The exciting part of being the customer is the new innovations that all companies are now coming up with. If we look at some companies such as apple, Samsung, Toyota, these companies are consistently bringing out new goods and services because of the growing demand, tough competition and rewards for popular products. Steve Jobs once stated, “you can’t just ask customers what they want and them try to give that to them.
Furthermore, how markets can survive during market failures? How and when government can intervene in order to prevent any market failures? Market failures are one of the most important reasons for welfare states’ development, but there is much more to add. However, market problems and market conflicts should be taken into account too. My master thesis, “Can the welfare state be the future of the Global economy” supervised by Dr. Kapás, engendered my interest in this area.
The government largely promoted trade because it was their main source of revenue. Trade was the main business in China at the time and it was the main source of the money flowing through the country. Another reason the government benefited financially, was the taxes they collected. They charged exorbitant taxes for land trade routes and still charged a substantial amount by way of the Grand Canal. They kept open borders, allowing for foreign trade.
In addition, a supranational institution is one body that transcends national boundaries and decision making for the common good of the group. The member states critically reduce their sovereignty in order to reap the benefits of the European union in which they gain economic stability, modernization of countries, and peace. However, there is
The parliament was given its authority by the voting system within the UK which gave the parliament legitimacy to make, amend or abolish laws. The UK then seen the 1911 and 1949 Parliament Acts that have further reduced the powers of the HOL and concentration of power in the HOL and its executive the prime minister. If the HOL introduces a law and the majority of the HOL agrees the law will be passed. The UK has an internal convention that it will go through steps to allow a royal assent of the law however this does not have to be followed as it is not law, again this shows the parliament as having absolute power/sovereignty. This change of powers sees sovereignty shift from the monarch to parliament.