INTB 3355 MODULE A HOMEWORK EXAM QUESTIONS
AND ANSWERS
/. Institutions are constructed to provide meaning and stability to social life, regulate the
relations of individuals to each other, and limit behavior of individuals and firms. -
Answer-✅True; All of these are characteristics of institutions.
/.Formal institutions operate through laws and regulations. They require members to
make a written commitment. - Answer-✅False; Formal institutions operate through laws
and regulations to influence behavior. Compliance is gained through the threat of
sanctions.
/.Examples of informal, normative institutions would include local town/city governments
and the U.S. government. - Answer-✅False; The UN is informal and normative. It
influences members' behavior through shared norms, and compliance is built on social
obligations. Governments with tax and policing authority are formal institutions.
/.Loaning seed money for entrepreneurial startups in developed nations is an area in
which the UN plays a significant role for international business. - Answer-✅False; The
UN is probably the best-known worldwide organization, and its 193 member-nations
(nearly all the countries in the world) are dedicated to the promotion of peace and global
stability. Given its stabilizing force in the world economy, the United Nations contributes
to creating the conditions under which international business thrives.
/.The UN General Assembly is the main staff organization responsible for the UN
administration. - Answer-✅False; The General Assembly is the deliberative body in
which each nation has one vote. The Secretariat is the staff of the UN.
/.An important assumption that the IMF makes is that collaboration among nations is
necessary to support trade. - Answer-✅True; The common interests of all nations
exceed their conflicting national interests. The idea here is that a rising tide raises all
boats; collaboration will pay off.
/.In a customs union, common external tariffs are added to an existing FTA, as found in
the Southern African Customs Union and Mercosur. - Answer-✅True; That is exactly
what a customs union is. Mercosur the Common Market of the South is actually a
customs union at this point with the goal of becoming a common market.
AND ANSWERS
/. Institutions are constructed to provide meaning and stability to social life, regulate the
relations of individuals to each other, and limit behavior of individuals and firms. -
Answer-✅True; All of these are characteristics of institutions.
/.Formal institutions operate through laws and regulations. They require members to
make a written commitment. - Answer-✅False; Formal institutions operate through laws
and regulations to influence behavior. Compliance is gained through the threat of
sanctions.
/.Examples of informal, normative institutions would include local town/city governments
and the U.S. government. - Answer-✅False; The UN is informal and normative. It
influences members' behavior through shared norms, and compliance is built on social
obligations. Governments with tax and policing authority are formal institutions.
/.Loaning seed money for entrepreneurial startups in developed nations is an area in
which the UN plays a significant role for international business. - Answer-✅False; The
UN is probably the best-known worldwide organization, and its 193 member-nations
(nearly all the countries in the world) are dedicated to the promotion of peace and global
stability. Given its stabilizing force in the world economy, the United Nations contributes
to creating the conditions under which international business thrives.
/.The UN General Assembly is the main staff organization responsible for the UN
administration. - Answer-✅False; The General Assembly is the deliberative body in
which each nation has one vote. The Secretariat is the staff of the UN.
/.An important assumption that the IMF makes is that collaboration among nations is
necessary to support trade. - Answer-✅True; The common interests of all nations
exceed their conflicting national interests. The idea here is that a rising tide raises all
boats; collaboration will pay off.
/.In a customs union, common external tariffs are added to an existing FTA, as found in
the Southern African Customs Union and Mercosur. - Answer-✅True; That is exactly
what a customs union is. Mercosur the Common Market of the South is actually a
customs union at this point with the goal of becoming a common market.
