The IMF role was to provide short term- loans to countries. The bank would operate on funds that each member country would contribute and it is from here whereby countries facing monetary deficient would borrow from. IMF was also tasked with the mandate of ensuring that …show more content…
This was primarily a cost- cutting strategy. Some of the reasons of producing in one market were either because there was availability of raw materials of availability of cheap labor. The multi- national companies also used to set- up base in a country with the initial interest of producing goods for the same market. A good example of the strategy was the car factories set- up in Columbia and Brazil with the aim of producing vehicles for the same markets. These would ensure that transportation costs would be cut and also creating employment in the