As the economic role of multinational， global corporations expands， the international economic environment will be shaped increasingly not by governments or international institutions， but by the interaction between governments(5) and global corporations， especially in the United States，Europe， and Japan. A significant factor in this shifting world economy is the trend toward regional trading biocs of nations， which has a potentially large effect on the evolution of the world trading system. Two examples of(10) this trend are the United States-Canada Free Trade Agreement (FTA) and Europe 1992， the move by the European Community (EC) to dismantle impediments to the free flow of goods， services， capital， and labor among member states by the end of 1992. However， although(15) numerous political and economic factors were operative in launching the move to integrate the EC’s markets， concern about protectionism within the EC does not appear to have been a major consideration. This is in sharp contrast to the FTA， the overwhelming reason for that bilateral initiative(20) was fear of increasing United States protectionism. None- theless， although markedly different in origin and nature，both regional developments are highly significant in that they will foster integration in the two largest and richest markets of the world， as well as provoke questions(25) about the future direction of the world trading system.
1. The primary purpose of the passage as a whole is to
(A) describe an initiative and propose its continuance
(B) chronicle a development and illustrate its inconsistencies
(C) identify a trend and suggest its importance
(D) summarize a process and question its significance
(E) report a phenomenon and outline its probable future
2. According to the passage, all of the following are elements of the shifting world economy EXCEPT
(A) an alteration in the role played by governments
(B) an increase in interaction between national governments and international regulatory institutions
(C) an increase in the formation of multinational trading alliances
(D) an increase in integration in the two richest markets of the world
(E) a fear of increasing United States protectionism...
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