ASSIGNMENT 3
INTERNATIONAL
BUSINESS
SUBMITTED TO – Ms. NIMMY ROSE JACOB
SUBMITTED BY – AKSHITA (220043), BCH2B
QUESTION –
What is the World Bank and IMF? What are their
differences?
ANS –
The World Bank and the International Monetary Fund
(IMF) are both international organizations established
after World War II with the goal of improving global
economic stability and prosperity. However, they
each have distinct approaches:
The World Bank is actually part of a larger group of
organizations called the World Bank Group, which
consists of five institutions that all work together to
achieve similar goals. The World Bank works to fight
poverty by offering financial assistance to developing
countries. They provide loans, grants and research to
help these countries improve their economies.
Focus: Long-term economic development and
poverty reduction in developing countries.
Activities: Provides loans, grants, and technical
assistance for infrastructure projects, education,
healthcare, and private sector development.
Impact: Aims to create sustainable economic
growth that lifts people out of poverty and
improves living standards.
IMF (International Monetary Fund) –
The International Monetary Fund (IMF) works to
achieve sustainable growth and prosperity for all of
its 190 member countries. It does so by supporting
economic policies that promote financial stability and
monetary cooperation, which are essential to
increase productivity, job creation, and economic
well-being. The IMF is governed by and accountable
to its member countries.
Focus: Maintaining stability in the international
monetary system and promoting economic
cooperation.
Activities: Monitors economic activity, offers
policy advice to member countries, and provides
short-term loans to countries facing financial
crises.
Impact: Works to prevent financial meltdowns
and currency crises, fostering a stable global
economic environment.
Difference between World Bank and IMF.
Aspect World Bank IMF
Main Focus Fight poverty Promote global
through economic economic stability
development and prosperity
projects
Instruments Loans, grants, and Policy advice,
research financial
assistance, and
capacity
development
Beneficiaries Developing countries All member
countries (190)
Loan Terms Varying interest rates Conditional loans
depending on based on policy
creditworthiness reforms
Example Building Providing
Activities infrastructure, emergency loans,
improving monitoring
healthcare, exchange rates
education
