In November 2015, the Purchasing Managers' Index (PMI)for Canada 'S

question 186

Multiple Choice

In November 2015, the Purchasing Managers' Index (PMI) for Canada 's manufacturing sector was 48.6 while the PMI for Germany was 52.9.Based solely on this data, we would expect

• A)employment to rise in both regions.
• B)employment to fall in both regions.
• C)employment to remain stable in Canada and fall in Germany.
• D)employment to fall in Canada and remain stable in Germany.
• E)employment to fall in Canada and rise in Germany.

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Definitions:

Tariff

A tax imposed by a government on goods and services imported from other countries, intended to increase their price and make domestic products more competitive.

Most-Favored-Nation Status

A trade status granting a nation the best trading terms available to any other nation, such as lowest tariffs or highest import quotas.

Negotiated Tariff Rates

Tariff rates determined through bargaining between countries, rather than set unilaterally, often resulting in lower duties.

Free-Trade Zone

A designated area where goods can be imported, stored, handled, manufactured, or reconfigured without being subject to import duties.