 In response to the first question, Buchanan and Keohane (2006) argue that global governance institutions such as the WTO or the IMF “are like governments in that they issue rules and publicly attach significant consequences to compliance or failure to comply with them—and claim authority to do so” (Buchanan and Keohane 2006: 406). These institutions are set up to handle certain issues in similar fashion as national political agencies would. Just like national political institutions, they are coordination devices. Only they are created to solve problems that arise at the global level.