Description

• Chapter 9:  International Financial Markets
• Chapter 10:  International Monetary System

Directions:

• Write a short summary,  and then answer all of the questions at the end of the case.
• Always use references.
• The summary should not exceed one page.
• Please read the case about three times before attempting to answer any question and you will find you get a better understanding of what is being asked of you.
• Please be sure to back up your answers with facts from the textbook, and put together complete and well thought out responses. I am looking for original input so, please integrate your thoughts and experiences in each case assignment.
• Also make sure that you support and reinforce your answers and replies with factual information from the textbook, research, work/life experiences, etc.

 

Thinking Globally

 

10-18. The World Bank and the IMF had once argued that the

leniency of debt forgiveness would make it more difficult

for themselves to borrow cheaply on the world’s capital

markets. If you were a World Bank donor, would you have

supported the HIPC Debt Initiative or argued against it?

Explain.

10-19. While working together on the HIPC Debt Initiative,

things came to a standstill when the IMF gave a more

optimistic forecast for Uganda’s coffee exports than did

the World Bank and so argued against the need for debt

relief. Which organization do you think should play a

greater role in aiding economic development? Explain.