Unit 2 part 2

What is market integration?

• A method of increasing competition

• A type of financial crisis

• A process of separating markets

• A situation where separate markets become one single market

Which type of integration involves merging with rivals to lessen competition?

• Vertical Integration

• Horizontal Integration

• Conglomerate Integration

• Backward Vertical Integration

What is an example of backward vertical integration?

• A company merging with a competitor

• A company creating subsidiaries

• A company acquiring a supplier

• A company opening its own retail stores

Which international financial institution was established to oversee exchange rates?

• International Monetary Fund (IMF)

• World Bank

• World Trade Organization (WTO)

• Bretton Woods System

What does the General Agreement on Tariffs and Trade (GATT) focus on?

• Providing loans to countries

• Reducing trade barriers

• Encouraging social development

• Stabilizing global finance

Which organization was formed to increase the price of oil?

• World Trade Organization (WTO)

• International Monetary Fund (IMF)

• Organization of Petroleum Exporting Countries (OPEC)

• European Union (EU)

What is the primary purpose of the World Bank?

• To oversee exchange rates

• To facilitate trade agreements

• To eradicate poverty

• To stabilize global finance

What is a characteristic of the Global Interstate System?

• States have no sovereignty

• International organizations have no influence

• Nations relate through peaceful negotiations

• Countries are dependent on each other

Which of the following is NOT a key element of the Bretton Woods System?

• US dollar as global currency

• Central bank as the monetary authority

• Establishment of the World Trade Organization

• Currency expressed in gold values

What is the main goal of international financial institutions?

• To create monopolies

• To support public and private investment

• To limit trade between countries

• To increase competition