Automobiles Imported from Canada or Mexico Must Have 60

question 139

Multiple Choice

Automobiles imported from Canada or Mexico must have 60%
North American content to be eligible for tariff elimination under
NAFTA rules.This is an example of:

• A)a rules of origin requirement.
• B)an environmental standard.
• C)a health and safety requirement.
• D)a preferential trade agreement.

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Definitions:

Export Demand

The demand for domestic goods and services in foreign markets.

Hedging

A risk management strategy used to offset potential losses in investments by taking an opposite position in a related asset.

Spot Exchange Rates

Spot exchange rates are the current exchange rates at which currencies can be traded immediately.

Foreign Exchange Risk

The risk of loss due to changes in currency exchange rates affecting the value of investments or financial transactions.