The Main Function of the 1997 Stability and Growth Pact

question 84

Multiple Choice

The main function of the 1997 Stability and Growth Pact (SGP) was to

• A) exclude a highly indebted EMU country
• B) enhance cooperation between France and Germany.
• C) tighten the fiscal constraints.
• D) distribute the Euro banknote among European central banks and to create a timetable for the imposition of financial penalties on countries that fail to correct situations of "excessive" deficits and debt promptly enough.
• E) determine specialized penalties for each member nation.

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Definitions:

Global Mind-Set

The ability to appreciate and adapt to different cultural norms and practices in a global business environment.

Location-Related Competency

Advantages or skills a company gains because of its geographical location.

Cultural Intelligence

The ability to relate to and work effectively across cultures and social contexts.

Functional Excellence

The mastery or high-level proficiency in specific functions or disciplines within an organization that drives superior business performance.