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An argument that was used in support of NAFTA's passage in the U.S.was that:
Production Levels
Production levels pertain to the quantity of goods or services produced over a specified period, directly influencing a company's inventory and supply chain.
Product Costs
Costs that are directly associated with the production of goods, including direct labor, direct materials, and manufacturing overhead.
Absorption Costing
A pricing approach that encompasses all costs associated with manufacturing—including direct materials, direct labor, and all manufacturing overheads, both variable and fixed, in a product's cost.
Fixed Overhead Costs
Costs associated with production that do not change with the level of output, such as rent, salaries, and insurance.
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