IMF (International Monetary Fund) from 2007 to present using Research Paper

IMF (International Monetary Fund) from 2007 to present using international business perspective - Research Paper Exampleglobalization has huge implications for companies as it can reduce the cost structure of the companies and bring in improvement in terms of quality of products. Globalization has helped in ameliorate international trade and investment volume as more and more companies work entered in to global food market and take the shape of multinational organizations. previous US companies used dominate in the field of international exports and FDI. But, with changing world scenario, various European countries, Japan as well as emergent economies like India, China, Korea, etc. have reduced the dominance of USA as they are following the same footprint (Hill, 2010). For example, share of FDI of the companies of developing world have increased from less than 1 percent in 1980 to as high as 15 percent in 2008, while the share of USA establish companies have declined from near 4 0 percent in 1980 to 18 percent in 2008(approximately) (Hill, 2010). The political scenario has also changed in this changed economic situation. The political dominance of US is no under great threat in this increasing market economy. Many European countries that were Communist earlier and Some Asian countries have undertaken antiauthoritarian politics and stressed on building free market economies. Hence, international businesses are getting more and more opportunities to enter these economies that have in one shot strengthen these economies. (Hill, 2010) In this globalized world, importance of global institutions has increased significantly in maintaining order in various economical and political fields. IMF is one of such institutes which watch an important position in this changing economic and political environment. In fact, it is helping this process of change by its policies. IMF is responsible for maintaining order and stability in the international monetary system. The p erformance of international businesses to a large extent depends on the outgrowth of international monetary system. If this system operates properly, then, the risks associated with international business operation reduce significantly. This paper will move its focus on some important issues relating to IMF policies and its scandals since 2007 as IMF activities is closely related to the performance of international businesses. (Hill, 2010) Issues and Problems with IMF since 2007 Since 2007, a subject of issues relating to IMF activities is worth mentioning as this period corresponds to the recent global financial crisis that has essentially affected internal business. Some of these issues will be looked at in this section. trial of IMF in the primal detection of US sub-prime crisis in 2007 IMF is responsible for maintaining stability in the world monetary system and any kind of crisis that my take place in future so that international businesses become aware of that event and t ake required steps. But IMF is being blamed for its failure to predict the progeny and severity of the financial crisis that was creates in US (Bennet, 2008). The crisis first emerged in the sub-prime market of US. There was a bubble in the market in 2006 and 2007. The movements in this market were some early sign of the upcoming event of global financial crisis. But, the IMF failed to capture those signals in sub-prime market. It is now being said that lack of technical and analytic capacity of the IMF along with USs unwillingness to implement surveillance of financial sector by IMF were responsible for IMFs inability to detect the early signs of the crisis and predict its emergence and severity. (Bennet, 2008 Bossone, 2008b) Changing macroeconomic Policy under global financial crisis Although IMF failed to predict the recent global