Institutions paper
Karim Jalil
GBM/380
April 6th, 2015
Jing Liu

Institutions paper
Table of Content
Introduction………………………………………………………………….3
The world Trade Organization……………………………………………….3
The World Bank……………………………………………………………...4
France, Germany and trade theories………………………………………....4
How World Trade Organization helps facilitate the trade process…………..8
How World Bank helps facilitate the trade process……………………….....8
Conclusion……………………………………………………………………9
References……………………………………………………………………10

Introduction
When it comes to conducting any kind of business between different countries, having financial crisis, war or natural disaster, the need of international institutions becomes the best option of a fair trade administrated by international policies, or low rate loans to face financial problems. In this paper I will discuss the importance of the World Trade Organization and the World Bank on conducting business between France and Germany and how these institutions facilitate the trade between both countries.
The World Trade Organization World Trade Organization handles the global regulations of trade between all nations. Its main purpose is to make sure that all trade has a smooth transition as freely as allowed by law. This gives piece of mind to all the consumers and producers around the world. This organization provides a safe and secure gateway for all its members’ and their markets. The rules and decisions made by the WTO are upheld throughout the WTO members’ countries. If a dispute should arise then the WTO will carefully weigh the agreements and commitments to ensure the trade policies are followed completely. This deters off any political or military conflict that may come from an escalation of disagreement (WTO, 2012).
The trade barriers open new relationships between all members’ nations. Each member’s country that belongs to the WTO is asked to sign a contract that spells out all trade agreements and this contract must be accepted and ratified by that member’s government. This contract gives the member certain trade rights that are recognized by all other member countries. The ultimate reason this is done is to guarantee all governments the same trade rights to all produces of goods and services, exports, and importers. The ultimate goal is to improve the welfare of people in the countries of WTO members (WTO, 2012).
The World Bank
The World Bank is formed by the support and co-operation of some 188 countries. The World Bank was founded with the hope and intention of rebuilding the war-torn Europe. Since then, the focus has been on the elimination of poverty from the face of the earth. According to the president of the Bank, Jim Young Kim, the mission is to wipe away poverty form the face of the earth by 2030 (WorldBank, 2015). The World Bank has undertaken numerous projects and programs in many developing countries to help them to transition into a developed country. The funding for all Bank operations comes from its members and currently there are 188 members. The Bank’s resources have been used to support the after math of all natural disasters and calamities in recent years, such as earthquake in India, China, and Haiti. Education, healthcare, infrastructure, transportation, agriculture, and post conflict settlements and resolutions are some of the projects and programs the World Bank is involved in to mention a few (WorldBank, 2015).
France, Germany and trade theories
France and Germany are exposed to the same environment, it whether the energy prices, the exchange rate of the euro, the financial crisis ... However, the export performance are very different, leading to the juxtaposition of the impressive external surplus Germany and the large external deficit of France. Before the euro, such a discrepancy would inevitably provoked monetary adjustments. The single currency prevents, but the penalties for the failure competitiveness take other less spectacular forms perhaps but equally clear