Why is NAFTA a free-trade area requiring rules of origin rather than a customs union?
a. A free-trade agreement allows politically sensitive tariffs of each nation to remain unchanged.
b. A customs union also requires rules of origin.
c. The overall level of U.S. tariffs was much higher than the overall level of tariffs in Mexico and Canada.
d. The overall levels of tariffs in Canada, Mexico, and the United States are similar, making rules of origin irrelevant.
Ans: a. A free-trade agreement allows politically sensitive tariffs of each nation to remain unchanged.
You might also like to view...
The statement "What the economy needs is a good war" is a perverse way of acknowledging that
a. patriotism is an important factor influencing people's acceptance or rejection of specific political parties and that these parties affect national economic performance b. over-population can ignite a population-induced business cycle c. wars require new technology, illustrating the idea that necessity is the mother of invention d. governments can be a cure worse than the disease e. war generates new and multiple demands for goods in the economy and that can jump start an economy that is in a recession into its recovery phase
If the interest rate on borrowing falls,
a. the demand curve for loans will shift out. b. the discounted value now of money to be received in the future will fall. c. some previously unprofitable prospective investments will become profitable. d. All of the above are correct.