Answer to Question 1
Answer: The goal of the World Trade Organization is to help countries conduct trade through a system of rules. It plays a role in monitoring, promoting, and protecting global trade.
The WTO ruled that the European plan maker Airbus received improper European Union subsidies for the A380 super jumbo jet and several other airplanes, hurting its American rival, Boeing.
Answer to Question 2
Answer: Together Canada, the United States, and Mexico comprise the second largest trading bloc in the world. Goods travel freely among the three nations without tariffs or quotas, thereby making consumer goods more competitive relative to goods from countries not in NAFTA. U.S. businesses can take advantage of lower wage rates in Mexico, again making their products more competitive in both the domestic and global markets.
On the other hand, significant cultural differences exist between the U.S. and Mexico. Mexico is high in uncertainty avoidance and power distance while the U.S. is low in both. The U.S. is an individualistic culture but Mexico is collectivistic. As a result, American managers may have some difficulty relating to the Mexican workers.
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