Why is punctuality considered important in German culture?

It reflects discipline, order, and structure.

It is a cultural tradition with no real significance.

What approach do Germans typically prefer in business negotiations?

Stability and calculated decision-making

Quick decisions with high risks

Spontaneous agreements without preparation

Negotiation in Germany

Management and Globalization Global Management Why companies go global How companies for global Global Business environments Global Business Types of global business Pros and cons of global businesses Ethnic Challenges for global business Culture and Global Diversity Cultural intelligence Silent language of culture Tight and loose cultures Values and national cultures Global Management Learning Are management theories universal? Intercultural competencies Global learning goals Key concepts of the challenges of globalisation: Global economy Resources, markets and competition are worldwide in scope Internationalisation The process of increasing involvement in international operations Globalization/Deglobalization Glob- the growing interdependence among elements in the global economy The worldwide interdependence of resource flows, product markets and business competition World 3.0 Different views: World flat vs. round Distance is a metaphor that represents the degree of dissimilarities between countries Balancing cooperation in the global Global Management Global management - managing things in different countries Managing business and organizations with interests in more than one country What do we expect from global Managers Knowing how to adapt Knowing the language Global Manager Is culturally aware and informed on international affairs International Business Conducting for-profit transactions of goods and services across national boundaries International Motive Why do firms internatioalize their activities Cheaper labour Labour tax Natural resources Enrolments to do business Clientele Exclusive materials Personal benefits: Taxes Reasons why businesses go global Customers Suppluers Capital During (1993) - 4 motive 1. Market seeking 2. Efficiency Seeking 3. Resource seeking 4. Strategic Asset Seeking Cuervo Cazurra, Narula and un (2015) - 4 motive s Internationalization Motives A company may also explore the opportunities in different markets in order to take advantage and in some cases extend the product life cycle What is a Market Entry Strategy Involves the sale of goods or services to foreign markets but do not require expensive investments Franchising Exporting and importing Involve the sale of goods or services to foreign markets but do Types of market entry strategies Global sourcing Exporting Importing Licensing agreement Franchising Types of Foreign Direct Investment (FDI) strategies: Joint venture Strategic alliance Owned Subsidiary (sometimes called WOS) How to go abroad What conditions will affect the decisions of firms on how to internationalize their activities? During (1978)- Eclectic paradigm OLI model OLI- Ownership, Location and Internalization Advantages Ownership advantages Resources owned by the organization that can be transferred across locations include trademarks, production techniques and processes, managerial skills and other resources not available to the competitors Location Advantages Represent the implications of choosing to produce or to perform activities in a specific location (country or region) Internalization Advantages: The ability to internalize or to incorporate activities that add value to its business Evolution of Concepts- New Elements Although economic factors are certainly important to explain the formation, growth and expansion of firms within and across national borders, they are not sufficient to explain the additional complexity when a firm decides to expand its activities across national borders Economic factors Investigate the economic elements that affect the internationalization of firms Behavioural Elements Explaining the additional challenges (and perhaps opportunities) a firm faces in foreign host countries when compared to indigenous (local) firms Behavioural theories Johanson and Wiedersheim-Paul (1975) and Johanson and Vahlne (1977) Included the psychic Distance concept (beckerman,1956) to explain the internationalization behaviour of firms The Uppsala internationalization model Psychic distance is: the sum of factors preventing the flow of infomatio from and to the market Psychic Distance is a broad concept that includes several elements such as: language, culture, political systems, level of education, level of industrial development Firms behave in a “Risk Averse” manner It means that when the perceived risk goes down, the firm increase its commitment to the foreign market \ The Haier Group Data Strategy Big DATA and Small DATA The use of small data to satisfy individual customers’ needs, however, the book mentions a huge cultural shock at the plant in Camden, south caroline Ex: top down, hard hat colors and hierarchy Culutral Differnces can have a huge impact on the internationalization of firms Kogut and Singh (1988)- Cultural Distance Index First statsical study on the implication of ciltiral distance to the selection of entry mode When investigating in culturally distant countries, foreign firms can choose to partner with foreign firms in order to gain local knowledge and share the risk associated to the investment (higher commitment = higher risk) How Companies Go Global Global sourcing The process of purchasing materials or services around teh world for local use Exporting Selling locally made products in foreign markets Importing Buying foreign made products and selling them domestically Exports correspond to what percentage of Candain GDP What countries are the major trending partners of Canada Management and Globalization How Companies Go Global Licensing Agreement One firm pays a fee for rights to make or sell another company’s products What are the potential risks associated to licesning The case of new balance in China Franchising A fee is paid for the rights to use another firms name, branding and methods Insourcing Insourcing: refers to local job creation that results from foreign direct investment Types of insourcing Joint ventures: operate in a foreign country through co-ownership by foreign and local partners Strategic alliances: A partnership in which foreign and domestic firms share resources and knowledge for mutual gains Foreign subsidiaries: local operation completely owned by a foreign firm Criteria for choosing a joint venture partner: Familiarity with your firm’s major business String local workforce Values its customers Future expansion possibilities Strong local market for partner’s own products Good Profit potential Sound financial standing Global business environments Legal and poliical systems Trade agreements and trade barriers Regional economic alliances Legal and political systems Differing laws and practices regards Business ownership Negotiation and implementation of contracts Foreign currency exchange Protection of intellectual property rights Counterfeit merchandise Political risk Potential loss in value of foreign investment due to instability and political changes in the host country Political risk analysis (expertise/experience) Forecast political disruptions that threaten the value of a foreign investment Changes in the rules of the game Brexit US Trade Wars-mexico-China Other examples Bolivia, Venezuela, China De-globalization The process of weakening interdependence among nations Trade Agreements and trade Barriers World trade organization Most favourd nation status Tariffs Nontariss barriers (quotes, restrictions, etc.) Protectionism Regional Economic Alliances USMCA (replacment for the NAFTA-North American Free trade Agreement) EU- European Union APEC- Aisa Pacific Economic Copperation ASEAN - Association of Southeast Asian Nationas SADC - Southern Africa Development Community MERCOSUR- Chapter 5- Global Management and Cultural Diversity (part 2) Review Types of global business Global corporation MNE (multinational enterprise) or MNC (multinational corporation) with extensive business operations in more than one foreign country Transnational corporation A global corporation that operates worldwide on borderless basis Some host country complaints about MNCs Host Country companits about MNCs: Excessive profits Interference with local government Domination of local economy Interference with local government Hiring the best local talent Limited technology transfer Disrespect for local customers Examples - War in Ukraine Disruption in global -value chains and increased pressure and interference of MNCs with local government Fertilizer imports in Brazil (one of the major producers of agricultural commodities) We must consider the triple bottom line and the impact in society, the environment and the economy $2.5 billion invest in potash mine in Brazill What about Globalization gap Large multinationals adn industrilizednaitons gaining disporoportinonally form globalization Globalization gap: Large multinational and industrialized nations gaining disproportionally from Globalization Some MNC complaints about host countries MNC Complaints about host countries: Profiit limitations Laws and regulations Overpirce resources Exploitative rules Foreign exchange restriction Failure to uphold contracts Mutual benefits for host countries and multinational companies Mutual benefits for host country and global corporation of MNC: Shared growth opportunities Shared income opportunities Shared learning opportunities Share development opportunities Develop projects together What are some of the ethical challenges for global business Ethincal challenges for global business Child labour Employmnet of children for worl otherwise done by adults Sweatshops Employment of workers at very low wages for long hours in poor working conditions Ex: Nike bad labour prices Unsafe working conditions Corruption Illegal practices that further one’s business interests Corrupiotn of froeign public officials Act makes it illegal for Candain firms and their representatives to engage in corrupt practices overseas Bribes to foreign officials Excessive commissions Non-monetary gifts Sweatshops Conflict materials What is culture Culture : The shared set of beliefs, values, and patterns of behvaiourr common to a group of people Food preferences Values and traditions Language and beliefs Religion Art music Life style Hofstede defines culture as: “The collectiv programing of teh mind distinguishing the members of one group or category of people from others” What is culture shock Culture Shock: Confusion and discoumfert a person experiences in an unfaamiliar culture Stages to adjusting to a new culture Confusion Small vitorires The honeymoon Irritation and anger Reality Cultural Intelligence The ability to adapt and adjust to new cultures What is Ethnocentrism Tendency to consider one’s own culture as superior others Slinet languages of culture Contect Low context High context Space Proxemics Ex: personal space Time Monochronic Polychronic High and low contexts cultures Edward T.Hall (1959) Def: Part of a discourse that surround a word or passage and can throw on its meaning Low context cultures Emphizes communication via spoken or written words Countries like United States, Canada and Germany High context cultures Rely on nonverbal and situational cues as well as on spoken or written works Thailand Malaysia Time Monochronic cultures People tend to do one thing at a time Canda Polychronic cultures Time is used to accomplish many different things at once Egypt Space Proxemics Study of how people use space to communicate In North American people value “personal space’ Many Latin and Asian cultures expect much less personal space Tight and Loose Cultures Cultural tightness-looseness Tight = Strength of norms that govern social behvaviour Japan, Korea, Malaysia Loose = tolerance for any deviation from norms Australia, Brazil, Hungary Values and national cultures (Hofstede) Power distance Uncertainty avoidance Individalism-collectivism Masculinity-femininty Time Orientation Indulgence vs. Restraint Comparative management How management pratices systematically differ among countries and /or cultures Intercultural competencies Skills and personal characteristics that help us be successful in cross cultural situations Global Managers (know how to adapt) Need to successfully apply management functions across interantional boundaries Global Learning goals Not universal Engage critical thinking Look everywhere for new management ideas Always consider culture

Multiple choice quiz on this reading: By 1900, the United States had claimed its place as a world power through the Spanish-American War. As the new century began, the country governed subject territories in Puerto Rico, Hawaii, Guam, the Wake Islands, and the Philippines. U.S. troops also occupied Cuba. U.S. businesses reached beyond the country's borders. During the first decade of the new century, the Coca-Cola Company, Quaker Oats, AT&T, the Standard Oil Company, Du Pont, General Electric, and Ford Motor Company seized the opportunity for international sales. After finding international markets, they built factories abroad, taking advantage of lower labor costs in foreign countries. Then they asked for U.S. protection of their investments and interests. Foreign countries invested heavily in Central America. U.S. investors focused on banana plantations and mining, as well as railroads, with little money in government bonds. By 1913, U.S. investments in Central America totaled about $93 million. British investment in Central America peaked at about $115 million in 1913. About $75 million of that total represented railroad holdings, mostly in Costa Rica and Guatemala. The other $40 million was in government bonds, which were worth little or nothing. The Roosevelt Corollary to the Monroe Doctrine From its earliest days, the United States claimed a special interest in the Western Hemisphere. The Monroe Doctrine, issued in 1823, warned European powers to keep their hands off Latin America. In 1902, Britain, Germany, and Italy mounted a naval blockade of Venezuela. They wanted to force the government to repay its debts. All the countries involved eventually agreed to settle the matter by arbitration. The United States stood back and did nothing, but U.S. citizens were clearly uneasy with the appearance of European military forces in "their" hemisphere. In 1904, President Theodore Roosevelt issued a corollary to the Monroe Doctrine, saying that the United States would act as a police officer to keep order in the region. He intended both to keep European military forces out of the hemisphere and to protect U.S. and European investors, exerting whatever pressure or control on Latin American governments that might be necessary to these ends. In 1905, the Dominican Republic owed $40 million in debts to European lenders. In order to prevent the European nations from using military force to collect their debts, Roosevelt used U.S. power. The United States basically took over collection of Dominican customs taxes, declared that $20 million of the debt was unjustified, and began repayment of the rest. Building a Canal The United States needed a canal through Central America, in order to save shipping time and costs. Colombia had the best location for a canal, and the United States negotiated a deal. It would pay Colombia $10 million for a three-mile-wide strip of land and would make annual rental payments of $250,000 yearly, beginning in 1912. Colombia's Senate turned down the deal, and Roosevelt exploded in rage, calling its members "foolish and homicidal corruptionists." Roosevelt considered seizing the land for the canal by military force but soon found an easier way. The province of Panama seceded from Colombia. A U.S. gunship stood off shore, protecting the Panamanian rebels. They formed a new republic under the protection of the United States. The new country of Panama and the United States agreed on a canal treaty within days. The new treaty had similar terms except that the Canal Zone would be five miles wide, instead of three, and the United States would guarantee and maintain the independence of Panama. Revolutions While Roosevelt welcomed the revolution that separated Panama from Colombia, he opposed most other revolutionary activity. So did his successors in office, William Howard Taft and Woodrow Wilson. The U.S. presidents sent troops to put down revolutions in Nicaragua and Haiti, using U.S. military forces to set up new governments in those countries and maintaining military occupations for years. U.S. military interventions were frequent throughout the hemisphere. Dollar Diplomacy President Taft preferred using "dollar diplomacy" to control Latin American countries. In Honduras, for example, U.S.-based banana companies virtually ran the government. Taft supported expanded U.S. investment in South and Central American countries, the Caribbean, and the Far East. He ordered Secretary of State Philander Chase Knox to protect U.S. investments, sending in military troops if necessary. On the World Stage As a world power, the United States did not limit its involvement to the Western Hemisphere. In 1905, President Roosevelt brought Russia and Japan to the negotiating table to end their war over control of Korea and Manchuria. Roosevelt agreed to Japanese annexation of Korea in return for Japan giving up any claim to China, Hawaii, and the Philippines. Roosevelt won the Nobel Peace Prize for settling this dispute. In 1906, Roosevelt's negotiating powers were tested again. This time, he mediated a dispute between the Alliance powers—Germany, Austria-Hungary, and Italy—with the Entente—France, Russia, and Britain—over control of Morocco. The United States backed France and ended the dispute. No longer an upstart, the United States had taken its place as a world power alongside its former colonial ruler.

1. Battle of Lexington At the Battle of Lexington in 1775, British soldiers and colonial militia faced each other on the village green. A shot was fired, but no one knows for sure who fired first. Even so, this moment is often called the beginning of the American Revolution. Why is the Battle of Lexington still considered the start of the American Revolution, even though it is unclear who fired the first shot? A. It marked the first time colonists and British soldiers fought in open battle B. It proved that colonists planned the war long before the fighting began C. It showed that British soldiers were fully responsible for starting the war D. It confirmed that colonists had already declared independence from Britain 2. Battle of Concord After the fighting at Lexington, British troops marched to Concord to destroy colonial supplies. Instead, colonial militia gathered and fought back, forcing the British to retreat toward Boston. Why is the Battle of Concord considered an important turning point in the early American Revolution? A. It showed that colonial militias could organize and successfully push back British troops B. It proved that the British army had already lost control of all the colonies C. It confirmed that the colonies had officially declared independence from Britain D. It demonstrated that foreign countries were already helping the colonial forces 3. Second Continental Congress Much of the early violent conflict between colonists and British soldiers took place in Boston. After fighting broke out at Lexington and Concord near Boston, colonial leaders met at the Second Continental Congress in 1775 to decide what to do next. Which answer best describes the main actions taken by the Second Continental Congress? A. They created an army, chose a leader, and tried to avoid war with Britain B. They declared independence, wrote the Constitution, and ended the war C. They raised taxes, formed a monarchy, and supported British rule D. They ended slavery, gave women rights, and expanded voting laws 4. Olive Branch Petition In 1775, colonial leaders sent a letter called the Olive Branch Petition to King George III of Britain. Based on this situation, what was the main purpose of the Olive Branch Petition sent to the king? A. To ask the king to restore peace between both sides B. To declare independence from Britain and begin a new nation C. To request help from foreign countries in the war effort D. To organize protests against British taxes across the colonies 5. Battle of Bunker Hill On June 17, 1775, during the Battle of Bunker Hill in Boston, colonial forces fought against the British on a hill overlooking the city. The fighting was intense and led to heavy losses on both sides. Which statement best explains why the Battle of Bunker Hill was an important battle in the war? A. The colonists won the battle, showing they were stronger than British forces B. The colonists won the battle, showing the British that the war would be short and easy for the colonists C. The British won the battle, showing the war would be difficult and costly for both sides D. The British won the battle, showing British forces could defeat the colonists easily 6. Pamphlets During the American Revolution, pamphlets were short printed writings that were inexpensive to produce and often written in everyday language so many colonists could read them. How did these features of pamphlets most affect their role in the American Revolution? A. They helped spread ideas widely, allowing more colonists to form and share opinions B. They limited ideas to educated leaders, keeping most colonists uninvolved C. They replaced newspapers entirely, becoming the only source of information D. They prevented disagreement, causing most colonists to think the same way 7. Thomas Paine’s Common Sense In 1776, Thomas Paine published Common Sense, a widely read piece of writing about the relationship between the colonies and Britain. How did this pamphlet most influence colonial thinking during the American Revolution? A. It encouraged colonists to support independence from Britain B. It convinced colonists to remain loyal to the British government C. It explained how colonial armies should organize attacks D. It described laws colonists were expected to follow 8. Declaration of Independence In July 1776, the Declaration of Independence listed complaints against King George III and explained the colonists’ ideas about government and rights. How do these parts of the Declaration of Independence work together to support the colonists’ decision? A. They connect ideas about rights to real examples, justifying separation from Britain B. They describe past events in detail, showing how the war had already ended C. They list future plans for government, explaining how leaders would be chosen D. They organize military actions, showing how the colonies planned to win 9. Washington Crosses the Delaware and Battle of Trenton In December 1776, George Washington led his army across the Delaware River and launched a surprise attack on Hessian mercenaries in Trenton. Which statement best explains why Washington’s crossing of the Delaware and the attack on Trenton was an important turning point in the war? A. It defeated British forces completely, ending the war in a short time B. It boosted morale, helping discouraged soldiers choose to keep fighting C. It brought foreign allies into the war, adding support for the colonies D. It led to independence, allowing the colonies to form a new nation 10. Battle of Saratoga In 1777, American forces defeated the British at the Battle of Saratoga, a major event during the American Revolution. Which statement best explains why the Battle of Saratoga was an important turning point in the war? A. It brought French support, helping Americans gain a strong advantage in the war B. It ended the war quickly, forcing Britain to surrender all control in the colonies C. It improved army training, helping soldiers become more skilled in future battles D. It changed leadership roles, causing new generals to take control of the army 11. Battle of Yorktown In 1781, American forces surrounded British troops at Yorktown, leading to a major moment in the American Revolution. Which statement best explains why the Battle of Yorktown was an important event in the war? A. French forces helped the Americans win, leading to the end of major fighting in the war B. Italian forces helped the British win, leading to a final victory over the American army C. German forces switched sides and helped the Americans win, leading to a final defeat for British troops D. French forces helped the British win, leading to a complete end of the war in the colonies 12. Treaty of Paris After the Battle of Yorktown, British public opinion turned against the war, and peace negotiations began. In 1783, American leaders signed the Treaty of Paris, which included agreements between the United States and Britain. Which statement best explains how the Treaty of Paris reflected the outcome of the American Revolution? A. Both sides made agreements, recognizing independence B. Americans gained independence, taking land without agreements C. British leaders kept control, ending the war with power D. Both sides refused compromise, continuing the war

English conversation in negotiation

Here are 12 questions based on the Word Wall Spin the Wheel Activity focusing on Robber Barons and Labor Unions: Multiple Choice: What is a "Trust"? A) A labor organization formed by skilled workers. B) A large business combination that aims to control markets and reduce competition. C) A worker strike that demands higher wages. D) A type of factory producing steel. Answer: B Which labor union sought to include all workers, regardless of skill, gender, or race? A) American Federation of Labor (AFL) B) Industrial Workers of the World (IWW) C) Knights of Labor D) Pullman Company Answer: C Who was the founder of Standard Oil, known for his monopolistic practices? A) Andrew Carnegie B) Eugene V. Debs C) John D. Rockefeller D) Samuel Gompers Answer: C Which event involved a nationwide railroad strike that led to federal intervention and the arrest of Eugene V. Debs? A) Haymarket Square Riot B) Pullman Strike C) Homestead Strike D) Coal Strike of 1902 Answer: B What is "Vertical Integration"? A) A system where one company controls all phases of production from raw materials to finished product. B) A labor union negotiation process for better working conditions. C) The consolidation of competing businesses under a single company. D) A strike where workers occupy a factory to prevent its operation. Answer: A Which of the following was a key goal of the American Federation of Labor (AFL)? A) Overthrow the capitalist system. B) Establish worker-run factories. C) Secure higher wages, shorter hours, and better working conditions. D) Eliminate all forms of skilled labor. Answer: C Fill in the Blank: John D. Rockefeller used ___________ to gain control over the oil industry and eliminate his competition. Answer: Trusts The labor organization founded by Samuel Gompers that focused on craft unionism and collective bargaining was the ___________. Answer: American Federation of Labor (AFL) The ___________ advocated for direct action and sought to organize all workers into one large union, regardless of skill or background. Answer: Industrial Workers of the World (IWW) The ___________ was an 1894 labor strike against the Pullman Company that resulted in federal troops being sent to restore order. Answer: Pullman Strike Andrew Carnegie’s belief that the wealthy had a moral obligation to use their wealth for the betterment of society was known as the ___________. Answer: Gospel of Wealth The ___________ began as a peaceful rally for an eight-hour workday but turned violent after a bomb was thrown, leading to a nationwide backlash against labor unions. Answer: Haymarket Square Riot These questions combine multiple choice and fill-in-the-blank formats, reinforcing key concepts related to labor unions and robber barons.

Generate exact multiple choice questions as give below 1. **Which round of negotiations led to the establishment of the World Trade Organization (WTO)?** - (a) Doha Round - (b) Tokyo Round - (c) Uruguay Round - (d) Kennedy Round **Answer:** (c) Uruguay Round 2. **The General Agreement on Tariffs and Trade (GATT) dealt with:** - (a) Goods only - (b) Services only - (c) Intellectual property only - (d) All of the above **Answer:** (a) Goods only 3. **The 'National Treatment' principle means:** - (a) Exported products are treated equally in the domestic market - (b) Imported goods are treated the same as local goods in the domestic market - (c) Exported products should have the same tariff - (d) None of the above **Answer:** (b) Imported goods are treated the same as local goods in the domestic market 4. **'Bound tariff' refers to:** - (a) A limit on tariffs for imports based on WTO commitments - (b) The tax rate on all exports - (c) The overall cost of tariffs - (d) A tariff-free trade condition **Answer:** (a) A limit on tariffs for imports based on WTO commitments 5. **The Most-Favoured Nation (MFN) principle ensures:** - (a) Equal treatment for all WTO members - (b) Only certain countries receive benefits - (c) Tariffs are raised annually - (d) One country is favored over others **Answer:** (a) Equal treatment for all WTO members 6. **The Agreement on Agriculture includes commitments in:** - (a) Market access, domestic support, and export subsidies - (b) Increasing crop yield and technology access - (c) Subsidizing imports only - (d) Agricultural tariffs only **Answer:** (a) Market access, domestic support, and export subsidies 7. **Which agreement replaced the Multi-Fiber Arrangement (MFA)?** - (a) Agreement on Textiles and Clothing - (b) Agreement on Agriculture - (c) TRIPS Agreement - (d) Technical Barriers to Trade Agreement **Answer:** (a) Agreement on Textiles and Clothing 8. **The WTO's TRIPS Agreement pertains to:** - (a) Agricultural products - (b) Intellectual property rights - (c) Investment measures - (d) Customs valuation **Answer:** (b) Intellectual property rights 9. **The Doha Round primarily focuses on:** - (a) Tariffs on manufactured goods - (b) Trade in agricultural goods - (c) Technology trade - (d) Intellectual property in medicine **Answer:** (b) Trade in agricultural goods 10. **The WTO aims to:** - (a) Restrict all trade - (b) Facilitate free and fair trade - (c) Promote monopoly - (d) Limit member negotiations **Answer:** (b) Facilitate free and fair trade 11. **RTAs aim to:** - (a) Block international trade - (b) Reduce trade barriers within a group of countries - (c) Increase tariffs among members - (d) Promote non-trade-related policies **Answer:** (b) Reduce trade barriers within a group of countries 12. **Customs unions require members to:** - (a) Keep individual external tariffs - (b) Impose the same external tariff on non-members - (c) Remove tariffs only temporarily - (d) Avoid any tariffs within the union **Answer:** (b) Impose the same external tariff on non-members 13. **The WTO's highest decision-making body is:** - (a) General Council - (b) Ministerial Conference - (c) TRIPS Council - (d) Dispute Settlement Body **Answer:** (b) Ministerial Conference 14. **Which principle prevents discrimination between WTO members?** - (a) MFN - (b) National Treatment - (c) Market Access - (d) Subsidy Reduction **Answer:** (a) MFN 15. **A common market involves:** - (a) A shared currency - (b) Free movement of goods, services, and factors of production - (c) Only trade agreements for goods - (d) No tariffs on agriculture **Answer:** (b) Free movement of goods, services, and factors of production 16. **The Agreement on Subsidies and Countervailing Measures addresses:** - (a) Trade in textiles - (b) Subsidies that distort trade - (c) All intellectual property laws - (d) Agricultural trade only **Answer:** (b) Subsidies that distort trade 17. **The WTO's TRIMs Agreement regulates:** - (a) Investments - (b) Trade in goods - (c) Trade in services - (d) Agricultural products **Answer:** (a) Investments 18. **The primary goal of the WTO's SPS Agreement is:** - (a) To allow subsidies on food exports - (b) To prevent arbitrary sanitary restrictions on trade - (c) To regulate intellectual property - (d) To impose environmental standards **Answer:** (b) To prevent arbitrary sanitary restrictions on trade 19. **A trading bloc is:** - (a) A group of countries with no trade agreements - (b) A group of countries that may have a common external tariff - (c) Only formed by countries from the same continent - (d) An agreement that restricts all trade **Answer:** (b) A group of countries that may have a common external tariff 20. **The GATT was succeeded by the WTO because:** - (a) GATT was only for developed countries - (b) WTO covers more areas like services and intellectual property - (c) GATT was non-binding - (d) WTO allows subsidies for agriculture **Answer:** (b) WTO covers more areas like services and intellectual property Certainly! Here are an additional 30 multiple-choice questions based on the document content, with answers provided after each question. --- ### Additional Questions and Answers 21. **The WTO’s Agreement on Technical Barriers to Trade (TBT) seeks to:** - (a) Restrict imports to a minimum - (b) Prevent standards from becoming unnecessary trade barriers - (c) Allow countries to set any standard for goods - (d) Promote only national standards for products **Answer:** (b) Prevent standards from becoming unnecessary trade barriers 22. **The Trade Policy Review Mechanism (TPRM) is designed to:** - (a) Impose tariffs on certain goods - (b) Regularly review and assess national trade policies - (c) Regulate customs duties globally - (d) Control intellectual property rights **Answer:** (b) Regularly review and assess national trade policies 23. **The principle of “progressive liberalization” means that:** - (a) Trade barriers are reduced gradually over time - (b) All tariffs are removed immediately - (c) Only developed countries reduce trade barriers - (d) No commitments are required from developing countries **Answer:** (a) Trade barriers are reduced gradually over time 24. **Which council oversees the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)?** - (a) General Council - (b) Services Council - (c) TRIPS Council - (d) Agriculture Council **Answer:** (c) TRIPS Council 25. **The WTO’s 'Dispute Settlement Body' is responsible for:** - (a) Deciding on national trade policies - (b) Settling trade disputes between member countries - (c) Creating new trade agreements - (d) Setting tariffs for member countries **Answer:** (b) Settling trade disputes between member countries 26. **A customs union differs from a free trade area because it:** - (a) Allows tariffs between member countries - (b) Establishes a common external tariff for non-members - (c) Applies only to services - (d) Imposes import quotas on all goods **Answer:** (b) Establishes a common external tariff for non-members 27. **Which of the following agreements deals with cross-border investments?** - (a) TRIPS - (b) TBT - (c) TRIMs - (d) GATS **Answer:** (c) TRIMs 28. **In a preferential trade agreement, member countries:** - (a) Impose the same tariffs as non-members - (b) Reduce trade barriers for each other only - (c) Apply high tariffs to non-member countries - (d) Have no external trade barriers **Answer:** (b) Reduce trade barriers for each other only 29. **The WTO’s Agreement on Agriculture includes which commitment?** - (a) Export subsidies for all agricultural goods - (b) Reduction of domestic support for farmers - (c) Complete elimination of tariffs on food products - (d) Increase in import quotas on agricultural goods **Answer:** (b) Reduction of domestic support for farmers 30. **The Agreement on Anti-Dumping allows countries to:** - (a) Increase exports by lowering prices - (b) Impose duties on imports sold below fair market value - (c) Eliminate all tariffs on certain goods - (d) Restrict domestic production of certain goods **Answer:** (b) Impose duties on imports sold below fair market value 31. **The main objective of WTO’s “National Treatment” principle is to:** - (a) Prevent imports altogether - (b) Treat foreign goods the same as domestic goods - (c) Impose tariffs on all foreign products - (d) Promote exports **Answer:** (b) Treat foreign goods the same as domestic goods 32. **Which of the following is a major goal of the WTO?** - (a) Ensuring trade restrictions remain high - (b) Promoting international free trade and competition - (c) Limiting access to global markets - (d) Supporting only developed countries **Answer:** (b) Promoting international free trade and competition 33. **An economic and monetary union involves:** - (a) A free trade area only - (b) A common currency among members - (c) No external trade agreements - (d) Different currencies for each member country **Answer:** (b) A common currency among members 34. **The WTO's Ministerial Conference meets:** - (a) Annually - (b) Every two years - (c) Quarterly - (d) Every five years **Answer:** (b) Every two years 35. **The WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) mandates:** - (a) Free trade for all countries - (b) Uniform intellectual property protection standards - (c) Different IP laws for each country - (d) No IP protection for developing countries **Answer:** (b) Uniform intellectual property protection standards 36. **The WTO principle of 'transparency' requires member countries to:** - (a) Keep trade policies secret - (b) Publicly disclose trade policies and practices - (c) Have identical trade policies - (d) Eliminate tariffs on all goods **Answer:** (b) Publicly disclose trade policies and practices 37. **One of the WTO's objectives in dispute settlement is to:** - (a) Resolve trade disputes peacefully - (b) Impose sanctions on non-members - (c) Regulate global tariffs - (d) Control member states' import quotas **Answer:** (a) Resolve trade disputes peacefully 38. **Under the WTO's Market Access commitment, member countries agree to:** - (a) Allow unrestricted imports - (b) Set maximum tariff levels on imported goods - (c) Ban certain goods from other countries - (d) Only trade with specific countries **Answer:** (b) Set maximum tariff levels on imported goods 39. **GATS, or the General Agreement on Trade in Services, governs trade in:** - (a) Agricultural goods - (b) Intellectual property - (c) Services - (d) Manufactured products **Answer:** (c) Services 40. **The Agreement on Pre-shipment Inspection (PSI) aims to:** - (a) Ensure high tariffs on all imports - (b) Allow for inspection of goods before shipping - (c) Eliminate export taxes - (d) Control intellectual property trade **Answer:** (b) Allow for inspection of goods before shipping 41. **Which of the following agreements aims to harmonize customs valuation?** - (a) Anti-Dumping Agreement - (b) Customs Valuation Agreement - (c) TRIMs Agreement - (d) Agreement on Subsidies **Answer:** (b) Customs Valuation Agreement 42. **A significant aspect of the Doha Round is:** - (a) Reducing tariffs on agricultural products - (b) Restricting intellectual property rights - (c) Eliminating all forms of trade - (d) Blocking services trade agreements **Answer:** (a) Reducing tariffs on agricultural products 43. **The term “dumping” in international trade refers to:** - (a) Exporting goods at prices lower than domestic market prices - (b) Importing goods illegally - (c) Increasing domestic prices - (d) Imposing excessive tariffs **Answer:** (a) Exporting goods at prices lower than domestic market prices 44. **WTO members are expected to follow which key principle in reducing tariffs?** - (a) National Treatment - (b) Progressive Liberalization - (c) Quota System - (d) Non-Discrimination **Answer:** (b) Progressive Liberalization 45. **The WTO aims to promote fair competition by:** - (a) Allowing tariffs as the only form of protection - (b) Supporting MFN and anti-dumping measures - (c) Limiting access to agricultural products - (d) Increasing subsidies **Answer:** (b) Supporting MFN and anti-dumping measures 46. **A plurilateral agreement within the WTO:** - (a) Includes all WTO members - (b) Involves only specific countries with shared interests - (c) Bans all tariffs for members - (d) Imposes global trade restrictions **Answer:** (b) Involves only specific countries with shared interests 47. **Trade facilitation in the WTO context means:** - (a) Making trade faster, cheaper, and more predictable - (b) Increasing tariffs on imports - (c) Eliminating all customs procedures - (d) Restricting trade with non-members **Answer:** (a) Making trade faster, cheaper

Make a vocabulary quiz with below.Crisis: a very difficult situation or emergency; “Investors are worried that continuing problems in the stock market might lead to another financial crisis.” Short-staffed: not having enough employees or workers; “We laid off dozens of employees to save money, but now we’re short-staffed and can’t fill orders quickly.” To drive someone nuts: to make someone upset or annoyed; “The autocorrect feature on my mobile phone really drives me nuts.” To arise: to happen or start to develop, especially for problems or situations; “Problems arose for the developers when local residents voted against construction of the new shopping mall.” To moan: to complain about something, especially in a way that bothers other people; “Every Monday morning my colleagues moan about having to come to the office so early.” Optimism: the feeling or belief that good things will happen; “Analysts are expressing optimism that the real estate market will bounce back quickly.” Pessimism: the tendancy or belief that the worst will happen. “Now is not the time for pessimism, we need to believe we can do this or we will fail.” Hurdle: a problem that must be overcome or dealt with in order to reach a goal or do something; “Lack of capital is a major hurdle for many young entrepreneurs with good business ideas.” © 2013 All rights reserved: www.businessenglishpod.com 2 To give up: to stop trying to do or achieve something; “After being rejected by over a dozen universities, Roger gave up on his plans to study for an MBA.” To keep your eye on the prize: to stay motivated and focused on your final goal or reward; “Okay folks, I know things have been really busy, but let’s keep our eye on the prize and we’ll get this done before Christmas.” Down the road: in the future; “Sales our good in our retail outlets, but 10 years down the road we’re going to have to be more competitive in the online market.” To overcome: to deal with a problem successfully; “You are going to have to overcome your lack of confidence if you want to be a good salesman.” Decisiveness: having the ability to make decisions and act firmly. “Decisiveness is a quality we look for in new managers.” Bumpy: we can use “bumpy” to describe a road or process that has many problems; “We had a pretty bumpy start-up phase, but we finally managed to turn a profit in our fifth year of operations.” To display: to show a feeling, emotion, or characteristic; “David displayed tremendous preparation and diplomacy during the negotiations.” On the fence: someone who is “on the fence” is having difficulty making a decision or taking a position; “While the executives support expansion wholeheartedly, the shareholders are still on the fence about it.” All-in: in poker, if you are “all-in” you put all your money on one bet, but we can use this expression more generally to say you are completely committed to something, especially a plan; “This sounds like a good idea, but before I go all-in I need to know more about the project partners.” To have what it takes: to have the ability or intelligence to do something; “I thought I’d enjoy law, but after a few years as a junior lawyer I realized I don’t really have what it takes.

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