Module A : int'l institutions from a business perspective

What are characteristics of the General Assembly of the United Nations?

- It adopts resolutions that express the will of the member-nations. - Its decisions are normative and voice world opinion. - It is the main deliberative body, with each nation having one vote.

Which statements are accurate regarding the International Monetary Fund?

- It makes funds available for balance-of-payments corrections. - It operates as a collaboration of nations. - It promotes international monetary cooperation.

What are characteristics of the UN Security Council?

- Its permanent members each have veto power. - Its permanent members are China, France, the Russian Federation, the United Kingdom, and the United States. - It is responsible for maintaining international peace and security.

Which statements describe characteristics of institutions?

- They are a collection of norms that regulate the relations of individuals to each other. - They are organizations that a group, society, or culture constructs to limit behavior. - They are organizations that a group, society, or culture constructs to provide meaning to social life.

What are characteristics of normative institutions?

- They establish standards. - They propagate principles. - They broadly represent humanity.

What are characteristics of the World Bank?

- Was established to address economic development. - Was established at the Bretton Woods meeting. - Functions as a nonprofit cooperative for its member-nations.

What are the two major global monetary institutions?

- World Bank - International Monetary Fund

What are the five basic principles on which the global trade system rests in WTO negotiations? promoting fair competition predictability, through binding and transparency promoting and marketing discrimination on imported goods freer trade, gradually, through negotiation encouraging development and economic reform remediating tariff and tax rates

- promoting fair competition - predictability, through binding and transparency - freer trade, gradually, through negotiation - encouraging development and economic reform - trade without discrimination

What are the five basic principles on which the global trade system rests in WTO negotiations? - remediating tariff and tax rates - trade without discrimination - freer trade, gradually, through negotiation - promoting fair competition predictability, through binding and transparency - promoting and marketing discrimination on imported goods - encouraging development and economic reform

- trade without discrimination - freer trade, gradually, through negotiation - promoting fair competition - predictability, through binding and transparency - encouraging development and economic reform

Which efforts describe ways by which the United Nations has direct impact on the conduct of business?

-Universal Postal Union protocols prevent losses and allow the mail to move across borders. - Commercial airlines have the right to fly across borders and land in case of emergency, due to agreements negotiated by the UN system. - When ships sail freely across the seas, they are protected by rules legitimized in UN conferences.

What are characteristics of special drawing rights (SDRs)?

1. The SDRs' value is linked to a basket of currencies made up of five international currencies. 2. A nation's quotas are denominated in SDRs. 3. SDRs are a reserve asset established by the IMF.

how does the United Nations directly impact the conduct of business?

1. The World Health Organization sets criteria for pharmaceutical quality and standardizes drug names. 2. When ships sail freely across the seas, they are protected by rules legitimized in UN conferences. 3. Universal Postal Union protocols prevent losses and allow the mail to move across borders.

3 things the un is generally respinsible for?

1. set technical standards and norms 2. prepare the ground for investment in emerging economies 3. Address the downsides of globalization like terrorism and arms traffic

United Nations

193- member org of countries dedicated to the promotion and peace and stability of the world

Which countries are members of Mercosur, the Common Market of the South?

ABPU or Paraguay Brazil Argentina Uruguay

Bretton Woods

An international conference in New Hampshire in July 1944 that established the World Bank and the International Monetary Fund (IMF).

Special Drawing Right (SDR)

An international reserve asset, defined by the International Monetary Fund as the value of a weighted basket of five currencies.

Free trade area

Area in which tariffs among members have been eliminated, but members keep their external tariffs

Common market of the South

Argentina, Brazil, Paraguay, Uruguay, and Venezuela

ASEAN stands for

Association of Southeast Asian Nations

who established the IMF and world bank and when?

Bretton woods, new hampshire in 1944

Who is is NAFTA?

Canada, mexico and the US

Which of the following is NOT a specific way in which the United Nations directly impacts the conduct of business?

Commercial airlines are prohibited from flying across borders and landing during emergency situations due to agreements negotiated by the UN system.

The European ________ administers the daily operations of the European Union

Commission

The World Trade Organization's current extended conference on trade is known as the ______.

Doha Round

ECOSOC

Economic and Social Council

Economy and Monetary Union (EMU)

Eu group that established use of the euro in the 18- country euro zone

EU legislative body whose members are popularly elected from member-nations

European Parliament

Which of the nine institutions within the EU represents the people of Europe and is elected from member-states?

European Parliment

The Maastricht Treaty established the Blank______ in 1993.

European Union

Body responsible for proposing EU legislation, implementing it, and monitoring compliance

European commission

A body of 28 European countries committed to economic and political integration

European union

Mercosur or Mercosul

The largest latin american trade agreement; includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, and Uruguay

secretariat

The staff of the UN, headed by the secretary-general

Institutions that influence behavior through laws and regulations

Formal institutions

FTA

Free trade area

The IMF quota formula is a weighted average of which of the following?

GDP economic variability international reserves openness

The IMF quota formula is a weighted average of which of the following? GDP Economic variability openness international reserves import tariffs

GDP economic variability openness international reserves

Deliberative body of the UN made up of all member-nations, each with one vote regardless of size, wealth, or power

General assembly

Organization for Economic Cooperation and Development (OECD)

Group of developed countries dedicated to promoting their own and other nations' economic expansion

The ______ operates on the premise that the common interest of all nations in a workable international monetary system far transcends their conflicting national interests.

IMF or int'l monetary fund

Institution that fosters global monetary cooperation, financial stability, international trade, high employment and sustainable economic growth, and reduction of poverty

IMF-- Int'l monetary fund

ICJ

International Court of Justice

World Trade Organization (WTO)

International organization derived from the General Agreement on Tariffs and Trade (GATT) that promotes it free trade around the world.

What are ways the Organization for Economic Cooperation and Development supports governments?

It helps maintain financial stability. It supports the fight against poverty. It supports efforts to increase economic growth.

Which publication reports the daily business of the General Assembly?

Journal of the United Nations

Most of the African economies are considered small and underdeveloped with the exceptions of which countries?

Nigeria South Africa

Nongovernmental organizations (NGOs) that influence behavior through shared norms and values are examples of Blank______ institutions.

Normative

NAFTA

North American Free Trade Agreement

Which institution provides information on economic and other activities within its member-nations and serves as a forum for discussion of shared economic and social policy issues?

OECD

What three countries belong to the common market known as the Eurasian Economic Union?

RBK or Russia Belarus Kazakhstan

Council of the European Union

The EU's primary policy-setting institution

TRIPS

Trade Related Intellectual Property Rights

Economic and social council

UN body concerned with economic and social issues such as trade, development, education, and human rights

International Court of Justice

UN body that makes legal decisions involving disputes between national governments

UN

United Nations

Which three countries comprise the North American Free Trade Agreement?

United States Canada Mexico

Doha Development Agenda

WTO extended conference on trade, also known as Doha round

WTO

World Trade Organization

Which institution is a rule-based, member-driven organization with decisions negotiated by all the member governments and is the only global international organization designed to establish and help implement rules of trade between nations?

World Trade Organization

Association of Southeast Asian Nations (ASEAN)

a trade alliance that promotes trade and economic integration among member nations in Southeast Asia

NAFTA definition

agreement creating a free trade area among Canada, Mexico, and the US

European union

an association of European nations formed in 1993 for the purpose of achieving political and economic integration.

______ are important to business decision-makers because they provide ways to settle conflicts between countries and resolve disagreements more easily than if one government worked directly with another. A. cooperatives b. regimes c. institutions d. Parliaments

c. insitutions

Which country is dramatically increasing its involvement in African aid, trade, and foreign direct investment?

china

Which type of institutions are collections of shared ideas that define reality by means of conceptual frameworks or schema that are usually neither explicit nor tangible?

cognitive

A(n) Blank______ market is created when a customs union lifts restrictions on the mobility of services, labor, and capital among member nations.

common

Customs Union (CU)

common trade policy toward others, collaboration that adds common external tariffs to an free trade agreement (FTA)

Special drawing rights are considered the Blank______ of the International Monetary Fund.

currency

Common market

customs union that includes mobility of services, people, and capital within the union

The impetus behind the Doha Round was to work on trade-related issues between Blank______.

developed and developing countries

Doha development agenda is also known as ?

doha round

The three areas of integration established in the European Union are ______.

domestic affairs foreign policy economic

Attempts by nations to create agreements that lead to improved trade conditions for parties to the agreement are known collectively as Blank______ integration.

economic

True or false: Trading blocs such as FTAs and common markets bring about cost reductions for firms outside the integrated area.

false

Which type of institution operates through laws and regulations to influence behavior?

formal

what did the ASEAN grew into?

free trade agreement, known as AFTA

In a(n) Blank______, there are no tariffs or quotas when members trade, and each member maintains its own external tariff on goods arriving from countries in the rest of the world.

free trade area

What is the main deliberative body of the United Nations, in which each nation has one vote regardless of size, wealth, or power?

general assembly

What are examples of cognitive institutions?

good manners motherhood duty

The World Trade Organization has developed extensive guidelines for trade, and these guidelines are followed because they are identified as socially acceptable. The World Trade Organization is a type of Blank______ institution. informal sanctioned cognitive formal

informal

_________ institutions use norms, values, customs, and ideologies to mold behavior. a. formal b. informal

informal

What are the two basic types of institutions?

informal and formal

Institutions that influence behavior through norms, values, customs, and ideologies

informal institutions

______ are organizations a group or society constructs to provide stability and meaning to social life. a. institutions b. cultures c. courts d. democracies

institutions

World bank

international financial institution that provides loans to developing countries for capital programs, focused on reducing poverty

The two major global monetary institutions are the ___________ and the________ ________

international monetary fund, world bank

Within a free trade area, restrictions generally remain on the movement of which of the following?

labor services capital

Security council

main peacekeeping body of the UN, composed of 15 members including 5 permanent members

The Council of the European Union represents the________ - ____________ and is the primary policy-setting institution in the EU.

member states

Economic integration agreements are informal Blank______ institutions that rely on agreements among members, and their development has tended to follow a general pattern from free trade area through common market to economic integration. cognitive quantitative normative regulative

normative

The United Nations operates with voluntary agreements among members based on their shared norms, which makes it an informal Blank______ institution.

normative

Economic integration also requires a high-degree of ______ integration.

political

Each of the 189 IMF members contributes funds, known as ______, that are determined by the nation's relative size in the world economy.

quotas

What are effects of trading blocs?

reduced quotas reduced tariffs cost reductions to firms inside the integrated area

Which part of the United Nations has the responsibility for maintaining international peace and security?

security council

Mercosur is a trade group based in Blank______.

south america

Per value

stated value

The Global Compact was established by the United Nations and is the basis for a(n) Blank______ initiative.

sustainability

With full economic integration, as in the European Union, a central bureaucracy is responsible for coordinating which of the following? tax rates labor systems transportation systems education systems

tax rates labor systems education systems

Trade-Related Aspects of Intellectual Property Rights (TRIPS)

the WTO agreement that protects copyrights, trademarks, trade secrets, and other intellectual property matters

What are two examples of formal institutions?

the federal government the police

The World Trade Organization has a direct impact on increasing Blank______.

trade flows

Of the five basic principles on which the global trade system rests in WTO negotiations, which is known as the most-favored nation (MFN) principle?

trade without discrimination

new institutional theory

understanding of institutions as social constructs, a collection of norms that structure the relations of individuals to one another

Which worldwide organization has 193 member-nations and is dedicated to the promotion of peace and global stability? World Bank United Nations World Trade Organization NATO

united nations