How Are States Constrained by IGOs

question 42

Multiple Choice

How are states constrained by IGOs?

• A) States are subject to binding regulations set by such organizations.
• B) States must align their policies to norms and rules of behavior created by IGOs if they are to benefit from membership in these organizations.
• C) States must have democratic elections in order to be members.
• D) States must renounce the use of force against other member states.

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Definitions:

Industrial Production

A measure of the output of the industrial sector of the economy, encompassing manufacturing, mining, and utilities.

Firm Size

A measure that typically reflects a company's scale of operations, often indicated by its total revenue, assets, or number of employees.

Risk Premium

The risk premium is the extra return above the risk-free rate that investors require to compensate for the risk of holding a risky asset.

Risk Aversion

The tendency of investors to prefer safer investments over riskier ones, indicating their reluctance to take on investments that carry a higher chance of losing value.