As the economic role of multinational, global corporations expands, th

Summary of Paragraph:

As global corporations expands , economic will be affected by interaction between government and global corporations .
Reason: trend towards regional trading blocks of nations
2 examples: FTA and Europe1992
Even Both examples have contrast , both shows integration in these regional blocks
Question: future direction of world trading system


(A) describe an initiative and propose its continuance
Not propose: but provoking questions
(B) chronicle a development and illustrate its inconsistencies
No inconsistencies are mentioned
(C) identify a trend and suggest its importance
Correct: effect on world trading system
(D) summarize a process and question its significance
Question is not on its significance
(E) report a phenomenon and outline its probable future
Future is not outlined.



(A) an alteration in the role played by governments
Yes, government plays a role by interacting with global corporations
(B) an increase in interaction between national governments and international regulatory institutions
will be shaped increasingly not by governments or international institution
So clearly interactions between them were not involved
(C) an increase in the formation of multinational trading alliances
Europe1992 is an example
(D) an increase in integration in the two richest markets of the world
interaction in USA , Europe and Japan markets can influence the world trade
(E) a fear of increasing United States protectionism
A fear that’s why local blocks were built and hence FTA came into picture



As the economic role of multinational, global corporations expands, the international economic environment will be shaped increasingly not by governments or international institutions, but by the interaction between governments and global corporations,

Passage talks about global corporations:
As economic roles of thee corporations expands, international economic environment will be shaped increasing by interaction

(A) Their continued growth depends on the existence of a fully integrated international market.
As these corporations expands , integration will be influenced. Reverse is not mentioned. Hence cant not be correct
(B) Their potential effect on the world market is a matter of ongoing concern to international institutions.
Concern to international institutions are not discussed.
(C) They will have to assume quasi-governmental functions if current economic trends continue.
Opposite of this is mentioned, As they expand , government will get influenced to interact with these global interactions, so it means their functionality will be changed but not going to remain as same
(D) They have provided a model of economic success for regional trading blocs.
These model were economic success or not have not been talked
(E) Their influence on world economics will continue to increase.
Exactly, as they expand their influence will be expanded.



(A) overcame concerns about the role of politics in the shifting world economy
Not mentioned
(B) originated out of concern over unfair trade practices by other nations
Not mentioned
(C) exemplify a trend toward regionalization of commercial markets
Yes as mentioned in our summary
(D) place the economic needs of the trading bloc ahead of those of the member nations
Not mentioned
(E) help to ensure the continued economic viability of the world community
Not mentioned as such



dismantle impediments to the free flow of goods, services, capital, and labor among member states by the end of 1992.

(A) There were restrictions on commerce between the member nations.
Correct as mentioned from the lines
(B) The economic policies of the member nations focused on global trading issues.
Not mentioned
(C) There were few impediments to trade between the member nations and the United States.
No, not between members nations and US
(D) The flow of goods between the member nations and Canada was insignificant.
irrelevant
(E) Relations between multinational corporations and the governments of the member nations were strained.
Not mentioned




. A significant factor in this shifting world economy is the trend toward regional trading blocs of nations, which has a potentially large effect on the evolution of the world trading system. Two examples of this trend are the United States-Canada Free Tra

Why author discussed about these 2 examples? He wants to bring into notice a factor in shifting world economy with these 2 examples.

(A) point out the similarities between two seemingly disparate trading alliances
Yes point out similarities between these 2 examples but why the author talks about FTA and Europe 1992 at first place because he wants to mentione with these 2 examples.
Hence true but not correct
(B) illustrate how different economic motivations produce different types of trading blocs
Motivation is same;
(C) provide contrasting examples of a trend that is influencing the world economy
For a moment remove contrasting .we read provide examples of a trend.
These examples happen to be contradictory.
I don’t have further argument to reject this option.
Seems correct
(D) identify the most important characteristics of successful economic integration
We only know that it will foster integration but we don’t know about important characteristic of this integraiton
(E) trace the history of regional trading blocs
not mentioned




(A) An argument is put forth and evidence for and against it given.
No evidence against is given
(B) An assertion is made and opposing evidence presented.
No opposing evidence
(C) Two hypotheses are described and shown to inconsistent with one another.
No inconsistency
(D) A phenomenon is identified and illustrations of this phenomenon offered.
Correct: phenomena of foster interaction
(E) A specific case of a phenomenon is discussed a generalization drawn.
Not a specific case but 2 examples