GLOBAL BUSINESS DISCUSSION RUBRICS
PLEASE CREATE FOUR SUBSTANTIAL PARAGRAPHS AND ADD REFERENCE FROM MATERIAL
PROVIDED.
THE INTERNATIONAL MONETARY FUND
For a long time, the International Monetary Fund (IMF) has had its
supporters and detractors. In this discussion, you will have the
opportunity to consider some of the IMF’s actions and determine
whether they were beneficial as well as ethical.
To help frame this discussion, consider the IMF’s actions in Greece.
Greece spent a decade in economic turmoil starting in 2009. The IMF
provided financial assistance to “bail out” Greece multiple times during
the crisis. Their loans came with requirements that Greece needed to
meet. Some argue that the IMF made the crisis much worse, whereas
others feel the IMF provided timely support to Greece not long after
the global financial crisis of 2008.
In your initial post, address two of the four bulleted questions below.
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•
•
•
When should a government, economy, or country be bailed out, if
ever? Justify your answer with specific examples and how the
bailout or lack of bailout would impact the global economy and
the future of globalization.
Ideally, which countries or organizations would provide the
economic support for a government that needs a bailout? Is the
IMF the ideal organization to bail out a country?
Is it ethical for the IMF to bail out countries that repeatedly make
bad economic and fiscal decisions? Is it ethical for the IMF to
have significant requirements attached to its loans?
What lessons should be learned from the Greek debt crisis for
countries with debt obligation issues and for organizations such
as the IMF?
MATERIAL
Textbook: Global Business Management opens in new window, Chapter
7
In Chapter 7 of your course textbook, you will explore the international
monetary system. Critical institutions of the system include the
International Monetary Fund (IMF) and the World Bank. You will examine
the history, roles, impact, and evolution of both institutions.
As you read, consider the following questions:
• How have historical events shaped the international monetary
system?
• What are the IMF’s and the World Bank’s roles when the
international monetary system experiences problems? How have
their roles evolved over time?
• What are criticisms of the actions taken by both the IMF and the
World Bank?
• What are examples of risks and benefits associated with digital
currency?
Textbook: Global Business Management opens in new window, Chapter
8, Sections 8.1 and 8.2
In these sections of Chapter 8 of your course textbook, you will examine
the steps that businesses take to trade foreign currency for their local
currency. Because foreign exchange rates change every day, you will read
about ways businesses try to mitigate the risk that comes with those
changes.
As you read, consider the following questions:
• What is currency or foreign exchange? What are foreign exchange
rates?
• What is a spot rate? What is a forward rate?
• How does foreign exchange impact a business’s bottom line?
• How can a business leverage foreign exchange to manage its risk?
Video: What’s the Difference Between the IMF and the World
Bank? opens in new window (4:15)
This video describes the history and evolution of the IMF and the World
Bank. In the process, it highlights the differences between the two
organizations.
As you watch, consider the following questions:
• Why were both organizations created?
• How have their purposes evolved over time?
• How do the missions and projects of both organizations differ?
Video: How the IMF Works opens in new window (1:59)
This video discusses the common actions the IMF takes as well as its
mission and goals. As you watch, consider the following questions:
• What are the IMF’s goals?
• What tools does the IMF use during financial crises?
A captioned version of this video is available: How the IMF Works opens
in new window.
Reading: IMF Conditionality opens in new window
This fact sheet provided by the IMF provides a summary of conditions to
which countries requesting to borrow funds must agree, helping ensure
that borrowers will be able to repay their debts to the IMF.
As you read, consider the following questions:
• How does conditionality help encourage safe and responsible
financial practices and policy making?
• What are the benefits of IMF’s continual reviews, evaluations, and
check-ins with borrowing countries?
Video: Should Central Banks Be Independent? opens in new
window (8:52)
This video explains the role of central banks. It is one part in a series of
videos that explain monetary policy and the role of central banks, their
tools, and their impact on economies.
As you watch, consider the following questions:
• What do central banks do? What are their tools for impacting the
economy?
• How do central bank decisions directly impact you (or consumers
in general)? Think about your interactions with banks.
• What are the risks of politicizing central bank decisions?

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