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International Economy The Recent Economic Essay

The creation of jobs will be beneficial to Pakistan, as it will lead to: an increase in the standard of living, a decrease in social costs and an improvement in political stability. On the other hand, its neighbor India will benefit from Pakistan's geographical neighbors to include: Iran, Afghanistan, China and Tajikistan. As India would be able to benefit from Iran, due to the fact that: the country is full of natural resources (which could help India in meeting its demand for oil and gas). However, since the WTO agreement requires all the signatories to remove trade barriers, there is a risk that developing countries will suffer at the hands of developed nations. As they (the developed nations) will export various commodities from a particular region, in return for the importing of primary goods. The big challenge is maintaining a balanced relationship, where the more developed nations will not take advantage of the developing ones and vice versa. In this aspect, the WTO can play a vital role in addressing possible imbalances that could occur in these associations. The Role of International Community to Ensure Economic Stability

When it comes to the international community, the world has become increasingly interdependent on one another. As a single event in one particular area can have ripple effects on the entire world economy. This is because globalization has opened more avenues of economic opportunity, while at the same time increasing the chances of instability. The big question is: how can the world community combine their efforts to ensure stability in the economy? The answer, means creating an environment of:...

To achieve these different objectives requires: an effective global banking system and sustainable trading relationships. The recent recession reflects the weakness of the global banking system. This was the result of poor lending activities and the continued upward adjustment of interest rates on those loans. This led to economic growth in the short-term, but a collapse in the long-run. As a result, it is the time for the world community to work together in the creation of a banking system that addresses the needs of developing nations. While at the same time, they are intelligently providing resources to help spur their development. This must work in conjunction, with a host of regulations to curb speculation and excesses that could occur in the future. If this kind of an approach can be taken, it will ensure that the world economy is seeing balanced growth by: addressing the needs of developing / developed nations and making certain that excess abuses are prevented.
References

World Trade Organization (1999). The WTO as the basic free trade institution: Ministerial Conference 1999. Retrieved from http://www.wto.org/english/thewto_e/minist_e/min99_e/english/state_e/d5325e.pdf

World Trade Organization (n.d.). About the WTO. Retrieved from http://www.wto.org/english/thewto_e/whatis_e/wto_dg_stat_e.htm

International Monetary Fund (2010). How the IMF promotes global economic stability. Retrieved from http://www.imf.org/external/np/exr/facts/globstab.htm

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References

World Trade Organization (1999). The WTO as the basic free trade institution: Ministerial Conference 1999. Retrieved from http://www.wto.org/english/thewto_e/minist_e/min99_e/english/state_e/d5325e.pdf

World Trade Organization (n.d.). About the WTO. Retrieved from http://www.wto.org/english/thewto_e/whatis_e/wto_dg_stat_e.htm

International Monetary Fund (2010). How the IMF promotes global economic stability. Retrieved from http://www.imf.org/external/np/exr/facts/globstab.htm
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