The System for Grouping Businesses That Grew Out of the NAFTA

question 47

Multiple Choice

The system for grouping businesses that grew out of the NAFTA accord is known as the:

• A)Standard Industrial Classification System.
• B)Industrial Data Records System.
• C)International Organization for Standardization of Business.
• D)North American Industry Classification System.

Understand the basic differences between forward contracts and futures contracts.

Comprehend the importance and use of derivatives in hedging financial risks.

Recognize the role of volatility in financial markets and its impact on derivatives trading.

Identify how firms use derivatives to manage exposure to various types of financial risks.

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Definitions:

Maquiladora

A factory in Mexico run by a foreign company and exporting its products to the country of that company, benefiting from lower labor costs and favorable trade agreements.

Preferential Trade Zones

Designated areas in which goods may be landed, handled, manufactured, or reconfigured, and re-exported without the intervention of customs authorities.

Organizational Missions

The foundational goals and objectives that define the purpose and direction of an organization.

Strategies

Long-term plans of action designed to achieve a particular goal or set of objectives, particularly in the context of business, military, or political operations.