A Foreign Alliance Talk (Scenario)

question 125

Multiple Choice

A Foreign Alliance Talk (Scenario)
As manager of the international department for your company, you have been asked by the local Chamber of Commerce to deliver a speech on foreign trade. The chamber president even goes so far as to say "and be sure to include the EU, NAFTA, CAEU, GAFTA and all that stuff because we're afraid the economists are right all the good jobs will have to go elsewhere." As you pour over your notes, you try to choose the best information to present in the allotted half hour.
-Another hot topic will be NAFTA. One of the points that you emphasize is that ________.

• A) U.S. high-tech companies, such as computer manufacturers, have been hit hard by the NAFTA provisions
• B) the United States has definitely come out the worst of the three nations
• C) Canada is profiting the most in this arrangement
• D) the expansion of NAFTA has benefited North America's competitiveness and economic power

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Definitions:

Aggregate Supply Curve

The relationship between the total quantity of goods and services that firms are willing to produce and sell at different price levels in an economy.

Laissez-Faire Capitalism

An economic system where private parties are free to engage in economic activities with minimal government intervention.

Classical System

The classical system in economics refers to a school of thought that emphasizes free markets, competition, and the self-regulating nature of economies.

Self-Regulating Markets

A concept where markets operate and correct themselves through the forces of supply and demand without external intervention.