International business
environment
Presented by : kiran & Simran

Presentation of world Bank And GSP
 Formation : July 1944
 Type : International financial organisation
 Headquarter : Washington. DC United States
 Membership : 188( countries) {IBRD}
172( Countries) { IDA }

What is world Bank
The World Bank is an international development organization
owned by 187 countries. Its role is to reduce poverty by
lending money to the governments of its poorer members to
improve their economies and to improve the standard of
living of their people.
The Bank is also one of the world's largest research centers in
development. It has specialized departments that use this
knowledge to advise countries in areas like health, education,
nutrition, finance, justice, law and the environment.
Another part of the Bank, the World Bank Institute, offers
training to government and other officials in the world
through local research and teaching institutions.

Why it come into existence
 The world Bank was created at the end of
world war 2 as a result of many European and
Asian countries needing financing
reconstruction efforts
 The bank is successfully in providing financing
for these devastated (destroyed) countries .
 The international Bank for reconstruction and
development was the first” multilateral
development bank “ before world war 2 had
ended.

Progress
 The new bank received most of its funds from
the new York investment community.
 The bank made its first general reconstruction
loans to France {$250 million- largest ever} the
Netherlands, Denmark and Luxembourg in 1947
 The bank’s first bond offering abroad, worth £5
million , came in Landon in 1957
 It helps resolve the Indus water dispute
between India

World Bank’s top borrowers:
1. Mexico
2. Brazil
3. Turkey
4. Pakistan
5. China
6. Indian
7. Argentina

World Bank group
 World Bank group
1. International Bank for reconstruction and
development (IBRD)
2. International development association ( IDA)
3. International finance corporation (IFC)
4. International centre for sattietment of
investment disputes (ICSID).
5. Multilateral investment guarantee agency
(MIGA)

World Bank‘s top contributor’s
1. USA: 16.39 %
2. JAPAN:. 7.87 %
3. GERMANY : 4.49%
4. UK: 4.40 %
5. FRANCE:. 4.30 %

GENERALISED SYSTEM OF
PREFERENCES
Introduction
The generalized system of preference or GSP is a
preferential tariff system which provides tariff
reduction on various products the concept of GSP is
very different from the concept of MEN ,MEN status
provides equal treatment in the case of tariff being
imposed by a nation but in case of GSP different
tariff could be imposed by a nation on various
countries depending upon factors such as whether it
is a developed country or a developing country both
the rules come under the purview of WTO.

Benefits of GSP
 Indian traders benefit indirectly through the benefit that
accrues to the importer by way of reduced tariff or duty-free
entry of eligible Indian products
 Removal of import duty on Indian goods makes it more
competitive to the importer – other things being equal.
 This tariff preference helps the new exporters penetrate a
market and established exporters to increase their market
share and improve the donor country’s profit margins.

Objective of GSP
The Generalized System of Preferences aims to
provide development support to developing
countries by promoting exports to developed
countries. The Generalized System of
Preferences furnishes opportunities for many of
the world’s poorest countries to use trade to
grow the economy and climb out of poverty.

Thanks you