WTO (World Trade Organisation)
- Encourages free trade between countries
- Solves trade disputes
- Currently in Doha Round in negotiations (i believe)
Therefore influence of WTO essentially promotes and increases global trade flows. Increasing trade flows leads to increased financial flows. Good example is the growth of TNCs in China. TNCs are established to provide a good or service and therefore involves a trade flow from host nation to China. Because TNCs promote direct and portfolio investment, naturally the level of global financial flows will increase. Hence WTO directly impacts on trade flows and indirectly on financial flows.
IMF (International Monetary Fund)
- Provides financial stability to nations (especially during GFC)
- Assists nations with exchange rate problems
Therefore the involvement of the IMF increases the level of global financial flows.
- Assists developing countries by providing loans, development assistance and technical advice.
The purpose of World Bank is to improve standard of living and increase economic development in a nation. Funding could boost infrastructure stocks and in long run can increase nations HDI, literacy rate, mortality rate etc. Therefore World Bank improves economic development.
hope that helps :wave: