What Do NAFTA and MERCOSUR Have in Common

question 50

Multiple Choice

What do NAFTA and MERCOSUR have in common?

• A)They are both South American free trade associations.
• B)They are both economic unions.
• C)They both have a local-content requirement.
• D)They both boycott Cuba.

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Definitions:

IRR

Internal Rate of Return; a financial metric used to estimate the profitability of potential investments, calculating an annual growth rate.

Profitability Index

A fiscal indicator that evaluates an investment's comparative profitability by calculating the ratio of the present value of future cash inflows to the upfront cost of the investment.

Present Value

The immediate worth of a future financial amount or sequences of cash flows, using a specified rate of return for calculation.

Invested Costs

Costs that have already been incurred for a project or investment.