Question

Since the middle of the 20th century, the international global business system has been shaped by global institutions. Countries have established these institutions to address the global issues that span their borders. The functions of these organizations have been established in international treaties. International businesses need to be aware of the functions of these organizations as they can have a profound impact on trade and commerce.

It is critical for businesses to understand the responsibilities of each organization as well as the rationale for its creation.
Match the description with the correct organization.
1. UN
2. GTO
3. WTO
4. Bretton Woods Institutions
5. GATT
A. The IMF and World Bank were created in 1944 by 44 nations that met to maintain order in the international monetary system and promote economic growth.
B. As much as 70 percent of its work is devoted to establishing higher standards of living, full employment, and conditions of economic and social progress and development.
C. A series of treaties that reduced barriers to trade.
D. Primarily responsible for policing world trade system.
E. Finance ministers and central bank governors of major economies coordinate policy on global financial crises.

Answer 1

1. UN - As much as 70 percent of its work is devoted to establishing higher standards of living, full employment, and conditions of economic and social progress and development.

The United Nations was founded in 1945 as a medium to coordinate human efforts on a global scale. They pursue through their subsidiary organizations, the welfare of humanity amongst other things.

2. GTO - Finance ministers and central bank governors of major economies coordinate policy on global financial crises.

Formed by 20 leading economies, the GTO was formed to combat the effects of the 2008 financial crises.

3. WTO - Primarily responsible for policing world trade system.

WTO regulates trade in the world to make it easier to transact.

4. Bretton Woods Institutions - The IMF and World Bank were created in 1944 by 44 nations that met to maintain order in the international monetary system and promote economic growth.

5. GATT - A series of treaties that reduced barriers to trade.

The General Agreement on Tariff and Trade (GATT) is a treaty between over 140 nations in which they agree to make trade easier by reducing barriers and adhering to Internation best practices.