Outline five objectives of each of the following:
(a) International Monetary Fund (IMF).
(b) European Economic Community (EEC).
Explanation
(a) Objectives of International Monetary Fund (IMF):
(i) To provide international monetary cooperation.
(ii) To encourage the expansion of international trade.
(iii) To encourage stabilization of exchange of exchange rates.
(iv) To make resources (foreign currency or gold) available from a fund to any member country to enable it correct balance of payment problem.
(v) To lessen the extent of disequilibrium (inequality) in the balance of payments of members
(vi) To reduce exchange controls on payments for current transactions among member countries.
(vii) To liberalize trade among member countries.
(b) Objectives of European Economic Community (EEC) (now European Union (EU) European Community (EC).
(i) To eliminate all tariffs and quotas between member countries.
(ii) To establish a common external tariffs on all goods imported from outside the EEC.
(iii) To encourage the free movement of service, capital and people.
(iv) To evolve common policies for agriculture, transport and communication.
(v) To stabilize currency fluctuations between EU countries and the introduction of monetary union with a single currency (Euro).
(vi) To maintain a free trade area through the removal of trade barriers.