Which of the Following Statements Is True of Free Trade

question 51

Multiple Choice

Which of the following statements is true of free trade zones?

• A)Central American countries and the Dominican Republic (CAFTA-DR)is a free trade agreement between the U.S.and Europe that has resulted in greater exports of U.S.beef to Europe.
• B)North American Free Trade Agreement (NAFTA)is a free trade agreement between the U.S.,Canada,and Mexico that has reduced illegal migration of Mexicans to the U.S.
• C)Association of Southeast Asian nations (ASEAN)is a free trade agreement between the U.S.and a group of South Asian countries that has led to an increase in U.S.outsourcing to countries like India.
• D)Mercosur is a free trade association of Latin American countries that aims to increase export subsidies and domestic content requirements in each member country.
• E)The Trans-Pacific Partnership is a free trade association of South Africa and its four neighbouring countries.

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Definitions:

Membership

The state of being a member or part of a group, organization, or society, often with specific rights and responsibilities.

Dissociation

The process by which a member's involvement in an entity, such as a partnership or limited liability company, ends.

Duty of Care

A legal obligation to avoid actions or omissions that could foreseeably harm others.

Duty of Loyalty

The duty of loyalty is a legal obligation of fiduciaries to act in the best interest of their beneficiaries or principals, avoiding conflicts of interest.