Under Statement of Financial Accounting Concepts No

question 70

Short Answer

Under Statement of Financial Accounting Concepts No.2, representational faithfulness is an ingredient of the primary quality of $\begin{array}{llc} & \text { Reliability } & \text { Relevance } \\\text { a. } & \text { Yes } & \text { Yes } \\\text { b. } & \text { No } & \text { Yes } \\\text { c. } & \text { Yes } & \text { No } \\\text { d. } & \text { No } & \text { No }\end{array}$

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Definitions:

North American Free Trade Agreement (NAFTA)

A trade agreement between Canada, Mexico, and the United States to reduce trade barriers and increase economic collaboration, replaced by USMCA in 2020.

U.S. and Canada

Refers to the two neighboring countries located in North America, known for their close economic, cultural, and political ties.

Political Risk

The potential loss in value of a foreign investment due to instability and political changes in the host country.

Foreign Investment

Capital investment made by one country into businesses or assets in another country.