Why Do Free Trade Proponents Dislike Rules of Origin in Trade

question 154

Multiple Choice

Why do free trade proponents dislike rules of origin in trade agreements?

• A) It decreases the amount of international trade in the world.
• B) It increases the amount of international trade in the world.
• C) It decreases incentives for trade diversion.
• D) It increases incentives for trade deflection.

---

Definitions:

Professional Labour Costs

Expenses associated with employing specialized professionals, such as engineers, lawyers, or doctors, including salaries, benefits, and training costs.

Manufacturing Businesses

Companies involved in the production of goods by transforming raw materials into finished products.

Net Realisable Value

The estimated selling price of an asset in the ordinary course of business, minus any costs associated with its sale or disposal.

Inventory

The stock of goods or materials held by a company, typically used in production or sold to customers.