Asked by Jeannie Howell on May 07, 2024
Verified
Which of the following statements about the North American Free Trade Act (NAFTA) is true?
A) NAFTA has had minimal impact on how U.S. manufacturers do business.
B) NAFTA is an agreement signed by the U.S., Canada, and Mexico.
C) In order to be a member of NAFTA, Mexico had to agree to join no other international trade alliances.
D) NAFTA has removed all tariffs from non-technical products that were sold among the companies who signed the agreement.
E) All of the above statements about NAFTA are true.
North American Free Trade Act (NAFTA)
An agreement among the United States, Canada, and Mexico designed to remove tariff barriers and facilitate the cross-border movement of goods and services.
Tariffs
Tariffs are taxes imposed by a government on imported or exported goods, typically used to regulate trade, protect domestic industries, or generate revenue.
Manufacturers
Companies or individuals that produce finished goods from raw materials through the use of tools, human labor, and machinery.
- Examine the effects of trade accords (such as NAFTA) and processes (like maquiladoras) on countries within the agreement and adjacent areas.
Verified Answer
VG
Valerie GalindoMay 14, 2024
Final Answer :
B
Explanation :
NAFTA is an agreement signed by the U.S., Canada, and Mexico. The other statements are false. A is false because NAFTA has had significant impact on how U.S. manufacturers do business. C is false because Mexico still participates in other international trade alliances. D is false because some tariffs are still in place for certain products.
Learning Objectives
- Examine the effects of trade accords (such as NAFTA) and processes (like maquiladoras) on countries within the agreement and adjacent areas.