Asked by Melissa Brown on Apr 25, 2024
Verified
The agreement between the U.S. ,the Dominican Republic and five small Central American countries that will eventually eliminate tariffs among all seven nations is called
A) NAFTA.
B) CAFTA.
C) Mercosur.
D) GATT.
CAFTA
The Central American Free Trade Agreement, a trade agreement between the United States and Central American countries to reduce trade barriers.
Tariffs
Taxes imposed by a government on imported goods, often used to protect domestic industries from foreign competition.
- Comprehend the goals and effects of regional trade agreements like NAFTA and CAFTA.
Verified Answer
LG
laura grzyb8 days ago
Final Answer :
B
Explanation :
The correct agreement that involves the U.S., the Dominican Republic, and five small Central American countries is CAFTA (Central America Free Trade Agreement). NAFTA (North American Free Trade Agreement) involves the U.S., Canada, and Mexico, while Mercosur is a trading bloc in South America. GATT (General Agreement on Tariffs and Trade) was a multilateral agreement that aimed to reduce trade barriers between member countries. However, it was replaced by the World Trade Organization (WTO) in 1995.
Learning Objectives
- Comprehend the goals and effects of regional trade agreements like NAFTA and CAFTA.
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