As the economic role of multinational, global corporations

Question

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, especially in the United States, Europe, and Japan. 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 Trade Agreement (FTA) and Europe 1992, the move by the European Community (EC) to dismantle impediments to the free flow of goods, services, capital, and labor among member states by the end of 1992. However, although numerous political and economic factors were operative in launching the move to integrate the ECâ€™s markets, concern about protectionism within the EC does not appear to have been a major consideration. This is in sharp contrast to the FTA; the overwhelming reason for that bilateral initiative was fear of increasing United States protectionism. Nonetheless, although markedly different in origin and nature, both regional developments are highly significant in that they will foster integration in the two largest and richest markets of the world, as well as provoke questions about the future direction of the world trading system.

1) According to the passage, all of the following are elements of the shifting world economy EXCEPT 

(A) an alteration in the role played by governments
(B) an increase in interaction between national governments and international regulatory institutions
(C) an increase in the formation of multinational trading alliances
(D) an increase in integration in the two richest markets of the world
(E) a fear of increasing United States protectionism

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2) The passage suggests which of the following about global corporations?

(A) Their continued growth depends on the existence of a fully integrated international market.
(B) Their potential effect on the world market is a matter of ongoing concern to international institutions.
(C) They will have to assume quasi-governmental functions if current economic trends continue.
(D) They have provided a model of economic success for regional trading blocs.
(E) Their influence on world economics will continue to increase.

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3) The author discusses the FTA and Europe 1992 most likely in order to

(A) point out the similarities between two seemingly disparate trading alliances
(B) illustrate how different economic motivations produce different types of trading blocs
(C) provide contrasting examples of a trend that is influencing the world economy
(D) identify the most important characteristics of successful economic integration
(E) trace the history of regional trading blocs

ketanm · Answer

My pick

(B)
(E)
(C)

Ketan

prep_gmat · Answer

BEC

chunjuwu · Answer

Any more try or explanation? Please :oops:

Arsene_Wenger · Answer

BEB.

prep_gmat · Answer

Chunj,

The passage is about the increasing significance of multinational corporations in shaping the international economic environment. Author gives 2 exapmples of that by citing FTA and the Europe 1992.

1) According to the passage, all of the following are elements of the shifting world economy EXCEPT 
B) an increase in interaction between national governments and international regulatory institutions
 
B because the passage says: "As the economic role of multinational, global corporations expands, the international economic environment will be shaped increasingly not by governments or international institutions"
So, the author does not see international institutions influencing the shifting world economy.

2) The passage suggests which of the following about global corporations?
(E) Their influence on world economics will continue to increase.

E as this is the gist of the passage and the author gives a couple of examples to illustrate the point.

3) The author discusses the FTA and Europe 1992 most likely in order to
(C) provide contrasting examples of a trend that is influencing the world economy

Author says:
 "This is in sharp  contrast  to the FTA; the overwhelming reason for that bilateral initiative was fear of increasing United States protectionism.  Nonetheless, although  markedly different in origin and nature, both regional developments are  highly significant  in that they will foster integration in the two largest and richest markets of the world, as well as provoke questions about the  future direction of the world trading system ."

Based on this you can conclude that FTA and Europe 1992 follow differnt means to the same end of playing a significant role of influencing the world economy/trade.

mallelac · Answer

I got the answers as 
1-A

"the international economic environment will be shaped increasingly  not by governments  or international institutions"

2-A

" provoke questions about the future direction  of the world trading system"

3-C

" Nonetheless, although markedly different in origin and nature, both regional developments are highly significant in that they will foster integration "

chunjuwu · Answer

OA is B,E,C. 

Thanks

VerbalBot · Answer

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As the economic role of multinational, global corporations

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