1. Which of the following statements correctly describes the World Trade Organiz
ID: 392208 • Letter: 1
Question
1.Which of the following statements correctly describes the World Trade Organization (WTO)? Check all that apply.
A.One of the purposes of the WTO is to oversee international free trade agreements.
B.The movement to establish the WTO arose in opposition to the 1947 General Agreement on Tariffs and Trade (GATT).
C.The WTO promotes the enforcement of rules and regulations governing trade to reduce ambiguity in the business environment.
D.The WTO does not arbitrate trade disputes between member nations.
2. Because Black Diamond manufactures its outdoor sports products outside the United States, what risks must its managers be aware of? Check all that apply.
A.A manufacturing facility could be discovered to be polluting nearby soil and water, causing illness, and the negative publicity could hurt sales of BD products.
B.Risks are likely to arise from factors like inflation and regulations specific to the host country but not from conditions in other countries.
C.Sales could be hurt in the U.S. market if protesters highlight BD’s offshoring of manufacturing jobs.
D.If customers are concerned that workers in less developed countries are being exploited, they will be less likely to buy BD’s products.
3. Great Place to Work Institute named Microsoft as the best globalized company to work for. What characteristics could have qualified the company as a global company? Check all that apply.
A.Microsoft’s supply chains for its products include shipping raw materials, parts, and finished manufactured goods across national borders.
B.Microsoft has employees in many countries.
C.Microsoft sells its products and services around the world.
D.Microsoft’s corporate headquarters is in Redmond, Washington, and it employs many people there.
Explanation / Answer
1. As per the description of the WTO, the correct options are A & C. Explanation - these are the basic tasks overseen by WTO
2. The option that is most applicable is Option C. Any regulations imposing a heavy tafriff on foreign imported products could have an adverse effect on the price of the product and ultimately on the sales of the same. The tariff is basically imposed to push BD to move the manufacturing back to the US and create job opportunities within US instead of countries where labour is cheap like China or some other Asian nation.
3. The appropriate options for these woudl be A & B. Being awarded the 'Most globalized company' by the 'Great place to Work' institute higlights the fact that Microsoft has a Value Chain spanning across geographies and countries wherein people from different backrounds and nations collaborate and come up with a great product or service. This can be accomplished only if Microsoft hires talent from the local country of operation.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.