The major problem faced under the Free Trade agreement was? Select one: a) The problem of the quality of a product b) The number of member countries c) The number of non member countries d) Free Trade itself e) The problem of the origin of a product
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The major problem faced under the Free Trade agreement was?
Select one:
a) The problem of the quality of a product
b) The number of member countries
c) The number of non member countries
d) Free Trade itself
e) The problem of the origin of a product
Step by step
Solved in 3 steps
- The regional free trade agreement among the United States, Canada, and Mexico The regional free trade agreement among Costa Rica, Guatemala, El Salvador, Honduras, Nicaragua, and the Dominican Republic The agreement to end the tariff wars among industrialized nations, signed in 1947In a world where transporting goods and services across borders is costless, it becomes much easier for firms to access foreign markets. This would eliminate a major barrier that many companies face when considering international expansion. Firms can now export their products to foreign markets without worrying about expensive shipping costs, making it financially viable to target new customers in different countries. The absence of trade barriers, such as tariffs, quotas, and regulatory restrictions, further enhances the feasibility of international expansion. Trade barriers typically increase the cost of doing business across borders and can limit market access. With no such barriers, firms can freely engage in cross-border trade, increasing their market reach and diversifying their customer base. In a world with significant variations in factor conditions, such as labor, capital, natural resources, technology and infrastructure, firms can benefit from international expansion by…As a country opens itself up to greater international trade, the sector in which the country does not have a comparative advantage will ultimately have to shut down entirely in the face of import competition. Group of answer choices True False
- All of the following are advantages of free trade except: a. Free trade helps keep interest rates high b. The global market consists of more than 7 billion potential customers c. Global competition helps keep prices low. D.. Increase productivity in areas of comparative advantageWhich of the following is true of foreign trade zones? These are areas that are physically outside U.S. soil but are considered to be inside U.S. commerce. Goods entering foreign trade zones are subject to duty until they leave the zones. Federal government has made it mandatory for U.S. companies to set up manufacturing plants within the foreign trade zones. Companies that have set up manufacturing plants within the foreign trade zones are free from paying duty on defective materials.NAFTA is a trade agreement that was negotiated by the leaders of three countries. Which of the following countries was not part of this agreement? the United States Cuba Mexico Canada
- The law of comparative advantages in trade typically applies only to trade between nations and favors the party who has the highest opportunity cost. True FalseThe failure of the Doha round of negotiation after many years has led to an increase in regional trade agreements. Using trade theory, discuss the effect of regional trade agreements in Africa and their potential in improving economic outcomes (employment, prices, etc.).International trade harms the owners of relatively scarce factors of production and benefit the owners of relatively abundant factors of production in a country. This is because: a) Prices of relatively scarce factors are relatively expensive in a country compared with prices of elsewhere when there is no trade. b) Prices of relatively scarce factors are relatively inexpensive compared with prices of relatively abundant factors. c) Factors that are relatively abundant are more productive and get paid more. d) Factors that are relatively scarce are more productive and get paid more.
- Exports of goods is a strategy for international companies. Which of the following is not a limitation to export strategy. Select one: a. Threats of quotas b. Threats of import tariffs c. Establishment of trade agreement d. High transportation costs Which of the following represents the stage where economic integration is least complete Select one: a. Free Trade Area b. Monetary Union c. Common Market d. Customs Union Japanese auto producers found it easier to set up operation in US to deal with protectionist threats made by US. Select one: True False Residents of Ireland decide it is cheaper to import 100,000 more bushels of wheat from Canada than it is to reallocate domestic land to wheat production. In this case: a. The opportunity cost of wheat must be lower in Canada than in Ireland b. Ireland has a comparative advantage in wheat production. c. Canada must have an absolute advantage…Which of the following is not a use of the concept of terms of trade? Select one: a) Current price trends may be analyzed b) The causes for price changes may be analyzed c) Changes in price may be forecasted d) Gains from trade may be analyzed e) Domestic inflation may be estimatedThree South American countries enter into an agreement to remove all tariffs and trade barriers between them. They decide on a common external trade policy and charge the same tariffs. Which level of economic integration best describes this arrangement? Question 4 options: political union customs union common market economic union monetary union