University of Houston

INTB 3355

CHAPTER 3:

1)The United Nations institution addresses issues that require global or regional solutions.

1. True
2. False

2: The World Bank and the WTO work in tandem to support trade liberalization.

1. True
2. False

3: The goal of the Doha agenda is to keep trade within the markets of a developed nation.

1. True
2. False

4: The NAFTA integrates the nations of North America to ensure free trade and free movement of labor.

1. True
2. False

5: On EU matters, the European Monetary Union has authority that supersedes that of the member-nations’ national courts.

1. True
2. False

6: The IMF has had many successes. Which of the following points to one of the current Challenges the IMF faces?

1. Defining its purpose as the World changes.
2. Develop and maintain a system of currency exchange that makes global trade

possible.

3. Support governments in their noninflationary monetary management.
4. Help the world trading system avoid financial disasters.

7: All of the following are fundamental principles of ASEAN except:

1. Noninterference by members in the internal affairs of one another.
2. Build cohesion and mutual values needed for a common market.
3. Enlargement of the organization’s activities to include a peacekeeping force.
4. Effective cooperation among members.

8: NAFTA focuses on:

1. Opening government procurements to transnational bids.
2. Including protectionist barriers in all sectors that protect domestic products.
3. Fostering democracy, protecting human rights, strengthening security, and fighting corruption.
4. Serving as a regional vehicle for promoting liberalized trade and economic cooperation.

9: Which of the following is not a goal of the European Union?

1. Greater economic and political good.
2. Protecting European security.
3. Elimination of tariffs among member nations.
4. Free access to goods and labor of member nations.

10: What is the role of the Council of the European Union?

1. Pass European laws.
2. Administer the daily operations of the EU.
3. Act as a policy-setting institution of the EU.
4. Focus on financial and social issues.

11: What is the EU’s primary focus?

1. Pass European laws.
2. Politics and Economics.
3. Human Rights.
4. Green Issues.

12: What is the basis for the operations of Formal Institutions?

1. Geographic proximity to each other.
2. Regulations and laws.
3. Values and customs.
4. Global economic powers such as the EU and NAFTA.

13: What is the role of the UN?

1. Pass European laws.
2. Administer the daily operations of member nations.
3. Promote world peace and stability.
4. Focus on global financial and social issues.

14: What is the role of the IMF?

1. Pass laws and settle legal disputes between countries.
2. Set global trade policies.
3. Coordinate and enforce multilateral monetary rules.
4. Focus on global financial and social issues.

15: Exchange rates:

1. Are set daily by the IMF.
2. Are based on the Gold Standard.
3. Are based on the U.S. dollar.
4. Change daily.