QUESTIONS

1. Why World of trade organization created?

 The World Trade Organization (WTO) was created to ensure that trade
flows as smoothly and predictably as possible.

2. What are the benefits that a country can get from International trade?
 International trade allows a country to expand their markets and access
goods and services that otherwise may not have been available
domestically. As a result of international trade, the market is more
competitive. This ultimately results in more competitive pricing and brings
a cheaper product home to the consumer.

3. How do global corporations help the economy?

 Global Corporation is also referred to as Multinational Corporation (MNC),
they intentionally surpass the borders and take advantage of opportunities
in different countries to manufacture, distribute, market, and sell their
products because when they expand their business into another country,
their customer base expands along with it.

4. What is the role of GATT in international trade?

 The main role of the General Agreement on Tariffs and Trade (GATT) in
international trade was regulating the contracting parties to achieve the
purpose of the agreement which was reducing tariffs and other barriers
and to achieve the liberalization in international trade.

5. What is the differentiation between the world bank and IMF?

 The main difference between the International Monetary Fund (IMF) and
the World Bank lies in their respective purposes and functions. The IMF
oversees the stability of the world's monetary system, while the World
Bank's goal is to reduce poverty by offering assistance to middle-income
and low-income countries.

6. What does the Organization for Economic Cooperation and Development do?
 The Organisation for Economic Co-operation and Development (OECD)
produces independent analysis and statistics to promote policies to
improve economic and social wellbeing across the globe.

7. Why do capitalist countries economically outperform their socialist counterparts?

 The major differences between capitalism and socialism revolve around
the role of the government and the equality of economics. Capitalism
affords economic freedom, consumer choice, and economic growth. While
socialism, which is an economy controlled by the state and planned by a
 central planning authority, provides for greater social welfare and
decreases business fluctuations.

8. Technology has reduced the role of human labor, now, do you think that
technologies can have pros and cons in the economy? Explain.
 Yes, there is no question that technology has greatly impacted the
economy today, from international trade to manufacturing to agriculture to
corporate business. Technology have both have a positive and negative
effect. The advancements in technology have not only affected the
economy on a large scale, but they also affect small businesses and
entrepreneurs.