Obstacles for economic policy coordinations an Example of the Topic Economics Essays by

Obstacles for economic policy coordinations Abstract Need essay sample on "Obstacles for economic policy coordinations" topic? We will write a custom essay sample specifically for you Proceed There are three main obstacles to successful coordination of international economic policy. They are enforcement, uncertainty, and corruption (Frankel, 1990; Tanzi s trade for kickbacks or for bribes. What are some obstacles to successful international economic policy coordination? For successful coordination of international economic policy, there are three main obstacles: enforcement, uncertainty, and corruption (Frankel, 1990; Tanzi & Davoodi, 1998). "The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations" (World Trade Organization, n.d.). The problem with only one organization to supervise all trade is the difficulty of this. Not every country is a member of the WTO and there are only 150 countries that are members of this organization out of the whole world. Therefore it is impossible for all of the trade policies to be enforced around the world. People Frequently Tell EssayLab writers: Who wants to write essay for me? Specialists propose: Original Essays For Sale Write A Paper Online College Paper Writing Service Reviews Essay Writing Company Uncertainty is the second obstacle that can emerge. Countries that enter a trade agreement are unsure as to what will happen in the long run. The questions that may appear will be about their jobs, inflation, sovereignty, environment, etc and the list continues. Its important to know or predict the outcome of the agreements. So with every business venture it is important to always keep the lines of communication open and also to do the proper research. Corruption is another issue that can occur. Some companies might invest in a country in hope of kickbacks or bribes. The result is that, paradoxically, some public investment can end up reducing a country's growth because; the average productivity of the investment will drop even though the share of public investment in gross domestic product (the total of all goods and services produced in a country in a given year) may have risen (Tanzi & Davoodi, 1998). The country that is thought as "giving the bribe" gets hurt in the long run. References Frankel, J.A. (1990, September 25). International nominal targeting (int): A proposal for overcoming obstacles to policy coordination. http://ksghome.harvard.edu/~jfrankel/MONTDUMM.R51.PDF Tanzi, V. & Davoodi, H. (1998, March). Roads to nowhere: How corruption in public investment hurts growth. http://www.imf.org/external/pubs/ft/issues12/index.htm