US Automakers Have an Interest to Make It More Difficult

question 38

Multiple Choice

U.S. automakers have an interest to make it more difficult for European competitors to locate assembly plants in Canada or Mexico and thereby ship finished automobiles to the United States duty-free. This is an example of

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

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Definitions:

Annuity

A financial arrangement designed to supply a consistent stream of payments, usually to assist individuals in maintaining income after retirement.

Payment Interval

The regular schedule at which payments are made, such as monthly or quarterly.

Periodic Interest Rate

The interest rate applied to a loan or investment over a specific period of time, shorter than a year.

Annuity

A fiscal tool that guarantees fixed periodic payments to a beneficiary, usually as a component of retirement planning.