Which Key Provision of NAFTA Restricts Japan from Assembling Autos

question 110

Multiple Choice

Which key provision of NAFTA restricts Japan from assembling autos in Mexico and avoiding U.S. or Canadian tariffs and quotas, unless the auto had a specific percentage of Mexican (i.e., North American) content?

• A) Services
• B) Standards
• C) Rules of origin
• D) Intellectual property
• E) Government procurement

---

Definitions:

Quota

A government-imposed trade restriction that limits the quantity or monetary value of goods that can be imported or exported during a specific time period.

Imports

Commodities or offerings sourced from outside the country and brought in for commercial sale or personal use.

European Union

A political and economic union of 27 European countries that participate in a standardized legal and regulatory system.

Free-Trade Zone

A specific region within a country where goods may be imported, handled, manufactured, or reconfigured, and re-exported without the intervention of customs authorities.