S Essay Example | Topics and Well Written Essays - 3000 words

S - Essay Example However, others deem otherwise. The super accumulation of profits by MNEs made them so powerful, to push shifts in the development strategies of governments and international institutions, specifically, international financial institutions (IFIs). Whichever way shows direct inter-relationship between these international organisations and the international business. It is this relationship that concerns this paper. Believing that the main reasons for the two succeeding world wars were due to national economic disparities and trade conflict, and that unrestricted fair trade would bring about equal opportunity for the economic development of nation-states thereby eliminating the reasons for war (Hull, 1948, p. 81), developed nations concurred to John Maynard Keynes’ neo-liberal model of development: a liberal international economic system coupled with government intervention (Stewart, 1987, p. 465). The necessity of an international body to regulate international trade and international business was acknowledged – without a high degree of economic cooperation among powerful nations economic conflict will certainly recur that most likely will heighten into a fiercer military war. (Polard, 1985, p. 8) Within these premises, the United Nations Monetary and Financial Conference, more known as the Bretton Woods Conference, held on July1-22, 1944 and attended by 730 delegates from 44 allied nations (Halm, 1945, p. 5; ‘Bretton Woods Conference’ 2007, p. 7057), agreed to establish the IMF and the International Bank for Reconstruction and Development (IBRD) known today as the World Bank (WB) to preclude similar depression experienced in 1930: â€Å"massive unemployment, escalating tariffs, and collapsing commodity prices† (Stewart, 1987, p. 465). Specifically, the IMF was a mutual agreement of the member countries to ensure the stability of currencies by circumventing protective exchange practices and to provide pre-conditioned