Which of the Following Statements Is True of Free Trade

question 51

Multiple Choice

Which of the following statements is true of free trade zones?

• A)Central American countries and the Dominican Republic (CAFTA-DR)is a free trade agreement between the U.S.and Europe that has resulted in greater exports of U.S.beef to Europe.
• B)North American Free Trade Agreement (NAFTA)is a free trade agreement between the U.S.,Canada,and Mexico that has reduced illegal migration of Mexicans to the U.S.
• C)Association of Southeast Asian nations (ASEAN)is a free trade agreement between the U.S.and a group of South Asian countries that has led to an increase in U.S.outsourcing to countries like India.
• D)Mercosur is a free trade association of Latin American countries that aims to increase export subsidies and domestic content requirements in each member country.
• E)The Trans-Pacific Partnership is a free trade association of South Africa and its four neighbouring countries.

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Definitions:

Percentage of Sales

A financial metric or approach calculating a certain cost or investment as a proportion of sales revenue, useful in budgeting and analysis.

Industry to Industry

Transactions or interactions that occur between businesses within the same industry, often related to supply chain, services, or B2B sales.

Organizational Risk Management

The systematic process of identifying, assessing, managing, and monitoring potential risks that could impact an organization's operations, reputation, or objectives.

Supply Decisions

Decisions relating to the procurement, management, and distribution of supplies or materials.