Identify the Incorrect Statement Concerning the North American Free Trade

question 146

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) Over a 15-year period, NAFTA has 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.

---

Definitions:

Psychological Pricing

A marketing strategy that utilizes price points believed to have a psychological impact, encouraging purchases.

Penetration Pricing

A marketing strategy where a product is priced lower than its competitors in order to attract customers and gain market share.

Price Skimming

A pricing strategy involving setting high prices at the launch of a new product to maximize profits from customers willing to pay more, before reducing the price over time.

Consumer Credit

Credit extended by retailers to the ultimate customers for the purchase of products or services.