C. Now use the information discussed and fill in the table below. Add more points to the suggested ones.

Global Institutions	Purpose of Creation	Main Achievements
The United Nations (UN)	§ to preserve peace through international co-operation and collective security; § to promote international cooperation, justice, social equity and economic development; § to provide humanitarian relief and development services.
The World Bank		§ has given interest-free grants and interest-based loans to help economically vulnerable communities and countries; § has lent money for what it calls adjustment projects, which are to support governments undertaking policy reforms, such as improved public sector management.
The International Monetary Fund (IMF)	§ to secure global financial stability; § to maintain order in international finance markets; § to encourage stability in exchange rates and orderly systems for exchanging money between countries; § to foster global monetary cooperation.
The World Trade Organization (WTO)		§ supervises 95% of the world’s global trade, assists trade related issues of its member nations that produce, export and import goods and services in a smooth manner. § contributes to the growth of trade by lowering of barriers, such as tariffs and import quotas. § improved monitoring by introducing the Trade Policy Review and the World Trade Report § increased transparency by removing green room negotiations
The North Atlantic Treaty Organisation (NATO)	§ to unite Europe and North America in an alliance to safeguard the freedom and security of all its members using political and military means; § to evolve its role beyond the Euro-Atlantic area in dealing with the growth of global terrorism.
The International Court Of Justice (ICJ)		§ has settled legal disputes between states in accordance with international law. § is effective in territorial disputes between countries such as "Fisheries" case when the court settled a long-standing dispute between the United States and Norway involving British fishing vessels operating inside Norwegian claimed waters.§ in its role as an advisory body, the court has given some important opinions with regard to the costs of peacekeeping, which could be reckoned as normal expenses.
G8	§ to secure political commitment to action on key global issues such as cancelling the debt of the world's poorest countries or making safe nuclear facilities. § to foster consensus on global issues such as economic growth and crisis management, global security, energy, and terrorism.	§
The Organisation for Economic Cooperation and Development (OECD)		§ has offered peer reviews to member nations about their performance. § has offered expertise and ideas to over 100 non-member countries for their economic development. § shifted to ‘Think global, act local’ to maximize new opportunities for democratic participation. § continued focus on economic growth through innovation.
The Organisation of the Islamic Conference	§ to consolidate cooperation among member states in economic, social, cultural, scientific, and other fields of activity. § to endeavor to eliminate racial segregation and discrimination and to oppose colonialism in all its forms. § to support all Muslim people in their struggle to safeguard their dignity, independence and national rights.	§
The World Economic Forum (WEF)		§ the Investment Climate Facility for Africa was launched in Cape Town with secured seed funding of US$ 100 million and a strong, business-led mandate to improve Africa's investment climate. § ensured access to education. For instance The NEPAD e-Schools Initiative project operates in 16 African countries and funded e-access in 120 schools by completion in mid 2007. § has worked out guidelines for large companies to support the HIV/AIDS programmes of smaller companies in their supply chains.
International Chamber of Commerce	§ to serve world business by promoting trade and investment, opening markets for goods and services, and the free flow of capital. § to endorse globalisation and efforts to lower barriers to international trade and investment. § to lobby for open trade, business self-regulation, fights corruption and commercial crimes.	§
Other		§

 

D. Work in groups. Discuss the following.

· How do these organizations shape the world order?

· What is their contribution to the proliferation of globalization?

A. International organizations are considered to be useful in harmonizing national and international policies, avoiding potential trade and investment disequilibria, dealing with problems of overlapping jurisdiction, and encouraging the development of multinational corporations by means of regulatory legislation and decision-making. Multinationals are believed to be another type of promoters of globalization due to their activities. Study some activities of multinational corporations and match them with the beneficial outcomes given below. Note that there is always more than one beneficial outcome of an activity.

Activities of multinational corporations		Beneficial outcomes
		1.…
Multinational companies are sensitive to global opportunities.		2. …
		3. …
Multinational companies invest in an area.		1. …
		2. …
		3. …
Multinational companies may provide training and education for employees.		1. …
		2. …
		3. …
Multinational companies purchase existing national assets through the privatisation process.		1. …
		2. …
		3. …

 

A. Management and entrepreneurial skills learned from multinationals are an important source of human capital.

B. Multinationals provide jobs directly or through the growth of local ancillary businesses such as banks and insurance.

C. Multinationals are able to sell far more than other type of company.

D. Multinationals can avoid transport costs.

E. Multinationals support better financial market regulation and supervision.

F. Multinationals can achieve great economies of scale.

G. Multinationals generate more income as newly employed workers spend their wages on consumption.

H. Multinationals create a higher skilled labour force.

I. Multinationals lead to a more efficient allocation of the worlds’ resources.

J. Multinationals contribute tax revenue to the government and other revenues.

K. Skills trained by multinationals may be transferred to other areas of the host country.

L. The injection of multinationals into the local economy is significant.