Which of the Following Was an Observable Effect of NAFTA

question 30

Multiple Choice

Which of the following was an observable effect of NAFTA?

• A)NAFTA led to a substantial decrease in the volume of trade among the three member countries.
• B)Low-cost firms in Canadian manufacturing industries were replaced by the high-cost firms.
• C)Imports of clothing and textiles into the member countries were diverted away from low-cost suppliers in Asia.
• D)There was massive shift of jobs toward Mexico.

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, providing a more accurate comparison of budgeted and actual performance.

Units

The individual articles, products, or services counted to measure and record inventory, production, or sales.

Net Operating Income

A financial metric that calculates a company's income after all operating expenses, excluding taxes and interest, have been deducted from total revenues.

Flexible Budget

A budget that adjusts or varies with changes in volume or activity levels.