GATS Differs from NAFTA in That GATS _______

question 5

Multiple Choice

GATS differs from NAFTA in that GATS _______.

• A) specifically defines four basic modes of supply
• B) does not allow its members to make their sector list restrictive
• C) does not grant non-members the right to be free from performance requirements
• D) does not deal with services generally, but rather by sectors.

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Definitions:

Fixed Cost

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Product

Anything that can be offered to a market to satisfy the desire or need of a customer.

Average Collection Period

The average number of days it takes for a business to collect payments from its customers after a sale has been made.

Discount Policy

A company's strategy regarding the conditions under which discounts are offered to customers, affecting sales volume, revenue, and cash flows.