SOSC 1520 Study Guide - Final Guide: International Monetary Fund, Bretton Woods System, Foreign Direct Investment
Document Summary
Bretton woods system: established in 1944 and named after the new hampshire town where the agreements were drawn up, the bretton woods system created an international basis for exchanging one currency for another. It also led to the creation of the international monetary. Fund (imf) and the international bank for reconstruction and development, now known as the. The former was designed to monitor exchange rates and lend reserve currencies to nations with trade deficits, the latter to provide underdeveloped nations with needed capital. The chief features of the bretton woods system were an obligation for each country to adopt a monetary policy that maintained the exchange rate by tying its currency to the u. s. dollar. The rise of globalization and technologically advancement brought about these economic systems. It was a system created to try to rebuild the international economic system that was damaged by world war ii. The goal of a just-in-time labor force is to allow firms to.
