Mgt 448 Global Financing and Exchange Rate Mechanisms

Global Financing and Exchange Rate Mechanisms

The old cliché’ money makes the world go around are true, it is how that money circulates and the way it circulates that is the focus of this analysis. The global market needs money to function and import and export goods from country to country. The first place the public thinks of in order to get money is the Bank. There are local banks in communities across the United States but there is also a community of banks that are global and have a great deal to with the political stability of countries and how money moves internationally.

Some of the major players in the global financial industry are the International Monetary Fund (IMF), the World Bank and the Asian Development Bank (ADB). Each one of these banks has their own attributes which will be detailed further.

The IMF or international monetary fund describes itself as follows “The IMF promotes international monetary cooperation and exchange rate stability, facilitates the balanced growth of international trade, and provides resources to help members in balance of payments difficulties or to assist with poverty reduction (IMF.org). “ The IMF monitors its member countries to look for trends and possible civil unrest so that country can protect its investments and the pool of countries within that banks organization.

The World Bank website describes their mission as “The World Bank is a vital source of financial and technical assistance to developing countries around the world. Our mission is to fight poverty with passion and professionalism for lasting results and to help people help themselves (Worldbank.org).

The Asian Development Bank (ADB) describes itself as “Our Vision - an Asia and Pacific Free of Poverty ADB is an international development finance institution whose mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Themselves and their environment by providing resources, sharing...