The Primary Objective of the World Trade Organization Is to

question 14

Multiple Choice

The primary objective of the World Trade Organization is to

• A) help underdeveloped nations increase their standard of living.
• B) achieve world peace.
• C) remove barriers to trade worldwide.
• D) enforce worldwide political and trade regulations.
• E) promote the invention of new technologies.

Know the definitions and purposes of ADRs and WEBS.

Analyze the appropriateness of using the S&P 500 as a proxy for the global market portfolio.

Understand the role of top executives in facilitating cooperation within an organization.

Identify the importance of position power for controlling disruptive behaviors within an organization.

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Definitions:

Decentralization

The distribution of decision-making powers from a central authority to smaller units or individuals within an organization.

Profitability

The ability of a business to earn a profit, which is the balance of revenue after accounting for all expenses, taxes, and costs.

Negotiated Price Approach

An approach to transfer pricing that allows managers of decentralized units to agree (negotiate) among themselves as to the transfer price.

Transfer Price

The price at which divisions of a company transact with each other, such as the sale of goods or services, often used for budgeting and tax purposes.