NAFTA Is a Market Zone That Eliminates Tariffs Between the U.S.and

question 15

Multiple Choice

NAFTA is a market zone that eliminates tariffs between the U.S.and _______.

• A) Canada, Mexico, and Costa Rica
• B) Canada and Mexico
• C) Mexico, Honduras, Nicaragua, Costa Rica and Panama
• D) Canada, Mexico, Costa Rica, and Panama
• E) Canada, Costa Rica, and Panama

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Definitions:

Comparative Advantage

The ability of a country or entity to produce a particular good or service at a lower opportunity cost than others, leading to more efficient international trade.

World Output

The total value of goods and services produced across the globe within a specific time frame, often used to measure the economic performance of the global economy.

Self-Sufficient

Refers to an individual, household, or community that has the capacity to fulfill all its needs without external assistance.

Resource Endowments

Resource endowments refer to the natural resources a country has available for use and trade, influencing its economic structure and development potential.