Page 212 - DMGT545_INTERNATIONAL_BUSINESS

Unit 10: International Financial Institutions-II

l IFC’s carbon footprint accounts for greenhouse gases (GHG) from internal business notes
operations. The total emissions—including carbon dioxide, methane, and nitrous
oxide—are translated into metric tons of carbon dioxide equivalent (tCO2e), so that
the total impact can be summed in one figure.
Questions
1. Elaborate the case study.
2. Focus on the issue of case study.

Source: http://ddoe.dc.gov/service/case-study-international-finance-corporation

self assessment

Fill in the blanks:
10. IFC against ............... is expanding its work in India by providing strategic technical
assistance.
11. The IFC was established in ............... .
12. With the help of ............... partners, IFC Against AIDS is looking into areas of possible
extensions of client programs in the formal supply chain of those enterprises.

13. There are ............... countries that are members of the IFC
14. The key feature of the IFC is that its loans are all made to ............... enterprises.
15. The IFC has also been instrumental in helping to develop emerging ............... markets.

10.5 summary

This unit attempts to give an overview of the functions in as simple manner as possible.

l z The concept of international liquidity is associated with international payments. These
payments arise out of international trade in goods and services and also in connection with
capital movements between one country and another. International liquidity refers to the
generally accepted official means of settling imbalances in international payments.
l z With effect from January 1, 1970, for increasing international liquidity IMF created a system
of Special Drawing Rights (SDRs). The SDRs are designed to supplement gold and the
reserve currencies, viz., the pound and the dollar. The SDRs represent entirely a new form
of paper money which will serve as well as gold or dollar, and hence are called “Paper
Gold”.

l z The key feature of the IFC is that its loans are all made to private enterprises and its
investments are made in conjunction with private business. In addition to funds contributed
by IFC, funds are also contributed to the same projects by local and foreign investors.

10.6 keywords

IFC: International Finance Corporation

IMF: International Monetary Fund
International Liquidity: International liquidity comprises of all reserves that are available to the
monetary authorities of different countries for meeting their international disbursement.

LDC: Least Developed Country

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