Identify the Incorrect Statement Concerning the North American Free Trade

question 114

Multiple Choice

Identify the incorrect statement concerning the North American Free Trade Agreement (NAFTA) .

• A) NAFTA lays out a plan to reshape the rules of trade among the U.S., Canada, and Mexico.
• B) NAFTA enlarges the free-trade pact that had already knocked down most barriers to U.S.-Canada trade.
• C) NAFTA has already eliminated most barriers to U.S.-Mexico trade.
• D) NAFTA prohibits moving of production and jobs from the U.S. to Mexico.
• E) NAFTA establishes a forum for resolving future trade disputes.

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Definitions:

Porter's Generic Strategies

A framework developed by economist Michael Porter that outlines three potential strategies—cost leadership, differentiation, and focus—for achieving competitive advantage.

Focused Differentiation

A business strategy where a company targets a specific market segment with unique products or services that stand out from competitors.

Service Guarantee

A promise made to customers that a service will meet certain quality and satisfaction standards, often with an assurance of compensation for failure to meet these standards.

Strategic Management Approach

An organizational management activity focused on setting priorities, concentrating resources, and ensuring operations are aligned with long-term objectives and the external environment.