In this final work reader is briefly informed about the institutions of the international economic and financial system. It explains their origin, function, structure and objectives. Final work also describes the European Union, and all its institutions are listed and explained, also Republic of Croatia is described as its twenty-eighth member. The primary objective was to describe to detail how the institutions of the international economic and financial system work, and how European Union and its institutions function. Describing trade policy and the terms of trade carried out by the member states. Also, there is mentioned the most important measures to protect the market and domestic manufacturers from excessive imports of goods from third countries. This work presents the cooperation between the International Monetary Fund and the Republic of Croatia, and the reforms of political and economic programs that are going towards the achievement of prosperity in economic and financial position of the state.