A Speech on Trade Alliances (Scenario)

question 98

Multiple Choice

A Speech on Trade Alliances (Scenario)
As manager of the international department for your company, you have been asked by the local Chamber of Commerce to deliver a speech on global trade. The presentation should include an overview of the world's major trade alliances and mechanisms that promote global trade. The Chamber president has also asked you to comment on a recent quote by a local politician, who stated: "NAFTA has been a bad deal for Canada and it continues to weaken our economy." As you review your notes, you wonder how you will fit all the information into the allotted half-hour presentation time!
-In response to the politicians' comments about NAFTA,you will point out that many economists would ________.

• A)agree because only the U.S.has achieved a stronger economy through NAFTA
• B)agree because only Mexico has achieved a stronger economy through NAFTA
• C)agree because both the U.S.and Mexico have achieved stronger economies through NAFTA,while Canada has not
• D)disagree because Canada,the U.S.,and Mexico have all achieved stronger economies through NAFTA

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Definitions:

Federal Budget Deficit

A situation where the government's expenditures exceed its revenues over a specific fiscal period.

Real Interest Rates

The interest rate adjusted for inflation, representing the true cost of borrowing and the real yield to investors.

National Debt

The total amount of money that a country's government has borrowed, typically from external or internal sources, to fund its operations and initiatives.

Recessionary Gap

The situation where an economy's real GDP is lower than its potential GDP, indicating underutilized resources and unemployment.