of the following best represents the primary economic and financial benefit to the U.S. from NAFTA? It led to increased tariffs on U.S. exports to Canada and Mexico. U.S. consumers had access to a wider variety of products. It resulted in the relocation of major U.S. corporations to Europe. The U.S. benefited from lo

of the following best represents the primary economic and financial benefit to the U.S. from NAFTA? It led to increased tariffs on U.S. exports to Canada and Mexico. U.S. consumers had access to a wider variety of products. It resulted in the relocation of major U.S. corporations to Europe. The U.S. benefited from lo

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter2: International Flow Of Funds

Section: Chapter Questions

Problem 7QA

See similar textbooks

Similar questions

Which of the following is an example of managing economic exposure by flexible sourcing policy? An American company sells its products in Brazil and Portugal. Reduced sales in Brazil due to the dollar appreciation against the “real” can be compensated by increased sales in Portugal due to the dollar depreciation against the euro. If yen is strong, it is preferable for a Japanese company to open a manufacturing subsidiary in the U.S. to produce and sell its products there. An American IT company hires software developers in Ukraine because of the weak position of grivna against dollar. A Canadian company spends a lot of money for research & development activities to improve its reputation and gain more customers.
Which of the following condition that is likely to force the U.S. firms to establish a subsidiary in the foreign country even if production costs are higher in a foreign country. A. The host government of that country increases all quotas. B. The host government of that country eliminates all quotas. C. The host government of that country eliminates all tariffs. D. The host government of that country reduces all quotas.
Your company located in the US imports raw materials from Europe. If the European Central Bank announces to lower the Euro exchange rate, what impact do you expect to see in your business? A. Your company will pay higher US dollar costs to import from Europe. B. Your company will pay lower US dollar costs to import from Europe. C. The Euro exchange rate doesn't have any impact on your company. D. It should reduce your competitiveness in your home market.
Which of the following is the correct option: The Leontief study testing the Heckscher-Ohlin theory showed that... a) The US exported capital-intensive goods and imported labour-intensive goods.b) The US exported labour-intensive goods and imported labour-intensive goods.c) Even though the US was a capital abundant nation, it exported labour intensive goods.d) The US was a capital abundant nation and therefore, exported capital intensive goods.
Which of the following statements is true of foreign trade zone? It is an area through which merchandise is allowed to pass with fewer procedures but higher taxes. These areas provide very limited employment opportunities. International companies can store goods in these zones without incurring taxes, before shipping them to other countries. Goods imported into these zones require import licenses and are subject to import duties.