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Unit 12: International Monetary Fund

Dumping: Selling the product at below the on-going market price Notes
GATS: General Agreement on Trade in Service
IBRD: International Bank for Reconstruction and Development
ICSID: International Centre of Settlement of Investment Disputes

MFN: Most Favoured Nation Treatment
MIGA: Multilateral Investment Guarantee Agency

12.5 Self Assessment

State whether the following statements are true or false:

1. IMF at its inception had 28 members who sign its agreement.
2. IMF has a role to play in helping the nations to correct the negative balance of payments.
3. India gave World Bank the name, International Bank for Reconstruction and Development.
4. Any country that cannot afford costly vaccinations can also avail grants from the World
Bank for this very purpose.
5. Maldives is a part of SAARC but not ASEAN.
Fill in the blanks:
6. ……………….aims at developing an equilibrium between income and employment.

7. IMF was established in New Hampshire and is headquartered at……………………
8. ……………………, a body of World Bank, covers all the nations of any type of risks in their
investments.

9. …………………became a member of ASEAN in the year 1995.
10. …………………has the full authority to take any decisions relating to international trade.

12.6 Review Questions

1. Trace the journey of IMF since its inception. What are the major changes that have taken
place since inception?
2. Explain the hierarchy at IMF. Compare it with the organisation of World Bank and WTO.

3. "Quotas also are the main determinant of countries' voting power in the IMF". Discuss.
4. Critically analyse the role of IMF in development of its member nations.
5. "IMF supports capitalist dictatorship, and is friendly to American and European
corporations". Comment.
6. "The World Bank is not a "bank" in the common sense." Substantiate.
7. Why do you think the World Bank is called International Bank for Reconstruction and
Development or vice-versa?
8. What is the difference between all the member bodies of the World Bank? Do they do
separate work from the World Bank?
9. Explain the rationale behind the formation of SAARC and ASEAN.

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