If the United States and Canada Implement a Regional Trading

question 71

Multiple Choice

If the United States and Canada implement a regional trading agreement that results in the two countries eliminating trade barriers between themselves while maintaining separate trade barriers against nonmember countries, they have formed a

• A) common market.
• B) customs union.
• C) free trade area.
• D) economic union.

---

Definitions:

Strategic Advantage

A position of superiority or advantageous condition that a business holds over its competitors, often achieved through innovation, quality services, or cost leadership strategies.

Dependent Demand Technique

A method used in material requirements planning that calculates the need for components based on the demand for the final products they contribute to.

Bill of Material

A comprehensive list of materials, components, and instructions required to construct, manufacture, or repair a product or service.

Material Requirements

Specifications and quantities of materials needed to manufacture a product, often determined by detailed planning processes such as Material Requirements Planning (MRP).