IB module A
The EMU (European Monetary Union or Economic and Monetary Union) has established the euro, a currency that is used in:
16 of the EU member-countries.
How many countries in the EU use the euro as their currency?
17
In developing economies, informal institutions tend to play a greater role than in developed economies, possibly because:
A and C A. the developing economies have more ambiguity and lack formal institutions by definition, so informal institutions step into the breach. C. informal institutions emerge to give order to the unstructured, chaotic environment.
NAFTA maintains restrictions on the movement of labor, a limitation that suggests it is:
A free trade area
The World Bank's two major institutions are the International Development Association and the:
International Bank for Reconstruction and Development (IBRD).
Is the WTO's idea of "fair competition" really a code phrase for free trade?
Not really. Trade relationships among nations can be exceedingly complex, and the WTO supports fair competition, which may mean freer trade rather than free trade.
EU rulings:
affect all businesses within the EU and those that trade within the EU.
Trade without discrimination" in the WTO means that
all trading partners must be treated the same.
The WTO has made progress on trade-related intellectual property rights (TRIPS). An example of this progress is:
an agreement that property rights should not take precedence over public health.
The Doha Development Agenda is:
an extended conference of the WTO initially convened in Doha.
The UN is important to international business for many reasons, including that it:
develops standards and norms in technical areas.
The first principle of the WTO's five basic principles is trade without:
discrimination
The WTO exists to:
establish and help implement rules of trade among nations in order to increase trade flows.
Economic integration often progresses:
in stages, from free trade area to customs union to common market.
International institutions are important to international business managers because, in general, they:
limit choices, thereby providing ways to settle disagreements and resolve conflicts.
The IBRD is a major institution of the World Bank whose function is to loan to:
middle-income and creditworthy poor nations.
Regional trade agreements such as NAFTA can be seen to impact the WTO:
negatively, because they undercut the nondiscrimination principle of the WTO.
The major function of the World Bank is to serve as a:
nonprofit banking cooperative for its members to meet development needs.
Under new institutional theory, institutions can be categorized as formal and informal, and the informal institutions can be further categorized as:
normative and cognitive
The WTO is the only international organization designed to establish and help implement:
rules of trade among nations.
The IMF initially played a central role in:
setting fixed exchange rates among nations' currencies with an established par value based on gold.
The EU's impact on international business is:
substantial, since EU standards, especially in the areas of ecology and sustainability, impact any firm that wants to do business in the EU.
That the common interest of all nations in a workable international exchange rate system transcends their conflicting international interests is the premise of:
the International Monetary Fund (IMF).
The idea that WTO members treat all members equally is known as:
the MFN (most-favored-nation) principle.
The EU began as a common market for:
the coal and steel industries.
The impact of the EU on the WTO could be said to be negative, since:
the favored trade relationships among EU members are not extended to nonmember countries, so the EU undercuts the WTO.
The Council of European Union, the primary policy-setting institution of the EU, is composed of:
the member-states' ministers who represent the specific area being discussed.
The most serious recent challenge to the EU has been:
the recent financial crisis.
This type of institution operates through laws and regulations, with coercion as the regulative mechanism.
formal
The results of liberalized trade so far have been:
uneven for developing and developed economies.
IMF quotas are determined by the relative size of a nation in the global economy and:
All of the Above A. determine the weight of the nation's voting in the IMF. B. determine how much a nation can borrow from the IMF. C. are the nation's "dues" to the IMF.
The following country is not a member of ASEAN:
China
The Doha Development Agenda is:
a WTO conference on trade.
At the end of World War II, the UN called for the conference that set up the World Bank and the IMF. This conference was:
held at Bretton Woods, New Hampshire.
Informal institutions are composed of sets of:
voluntary agreements.
