Which of the following is a major role that international organizations play in the global economy?

• A. Directly controlling national monetary policies
• B. Facilitating trade agreements between countries
• C. Determining the minimum wage in all countries
• D. Setting domestic tax rates for member nations

Answer: (B)

Verified step by step guidance

1. Understand the role of international organizations in the global economy, which typically involves cooperation and coordination among countries rather than direct control over national policies.
2. Recognize that international organizations facilitate cooperation by helping countries negotiate and implement trade agreements, which promote smoother and more predictable international trade.
3. Eliminate options that involve direct control over national policies, such as controlling monetary policies, setting minimum wages, or domestic tax rates, since these are sovereign decisions made by individual countries.
4. Focus on the option that highlights facilitating trade agreements, as this aligns with the common and major function of international organizations like the World Trade Organization (WTO) or International Monetary Fund (IMF).
5. Conclude that the major role of international organizations in the global economy is to facilitate trade agreements between countries, enabling economic cooperation and reducing trade barriers.