A Case Study of NAFTA, with Regard to the Benefits

question 78

Multiple Choice

A case study of NAFTA, with regard to the benefits for Canada
From U.S.trade, found that:

• A)Canada was not able to increase its exports due to barriers still remaining.
• B)Canada had modest gains but was harmed by immigration into the United States from Mexico.
• C)Canada had more trade diversion than trade creation and so was harmed overall.
• D)Canada had more trade creation than trade diversion and so benefited overall.

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed.

Partial Income Statement

A financial document that reports a company's revenues, expenses, and profits over a portion of the fiscal year, rather than the entire year.

Working Capital

The measure of a company's operational liquidity, calculated as current assets minus current liabilities.

Current Assets

Assets that are expected to be converted into cash or used up within one year or the operating cycle, whichever is longer.