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Which of the Following Statements Is True

question 3

Multiple Choice

Which of the following statements is true?


Definitions:

NAFTA

The North American Free Trade Agreement, a treaty between the United States, Mexico, and Canada that eliminated most tariffs and trade barriers between the countries.

Free Trade

The exchange of goods and services across international boundaries or territories without restrictions such as tariffs, duties, or quotas.

GATT

stands for the General Agreement on Tariffs and Trade, an international treaty created to reduce trade barriers and promote international trade through the reduction of tariffs and quotas.

Quantitative Restriction

A limit on the importation of certain goods that is imposed on the basis of number of units, weight, or value for national economic reason, or for the protection of domestic industry; prohibited by GATT.

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