Because of NAFTA, the U

question 15

Multiple Choice

Because of NAFTA, the U.S. shifts some of its imports from Europe to Mexico (a member of NAFTA) . This is an example of

• A) trade deflection.
• B) trade diversion.
• C) protectionism.
• D) rules of origin.

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Definitions:

Accounts Receivable

Funds that customers owe to a business for goods or services already provided but not yet compensated for.

Sales Tax Payable

A liability account that accumulates the collected sales tax from customers to be remitted to the respective tax authorities.

Asset Account

An asset account is a category in the financial statements that reports the value of a company's assets, such as cash, inventory, property, and equipment.

Liability Account

A type of accounting ledger entry that represents a company's legal debts or financial obligations that arise during business operations.