Question 1

The North American Free Trade Agreement has which of the following provisions?

Accepted Answer

NAFTA provides for the elimination of tariffs on most goods between Canada, Mexico, and the United States, but not the immediate elimination of all tariff and quota barriers on all goods. It does not involve the lowering of safety and air quality standards or the formation of a North American Trade Organization.

Question 2

The North American Free Trade Agreement (NAFTA) created a free trade area among ________.

Accepted Answer

NAFTA created a free trade area among Canada, Mexico, and the United States.

Question 3

An important guideline for companies wanting to successfully compete internationally is to familiarize yourself with foreign customs, languages, and cultures, including their lifestyles, values, customs, and business practices.

Accepted Answer

Familiarizing yourself with foreign customs, languages, and cultures is important for successful international competition as it allows you to understand and navigate local customs, values, and business practices, which can ultimately help you build better relationships and establish a strong brand presence in international markets.

Question 4

NAFTA is an agreement among the U.S., Canada, Mexico, Argentina, and Chile, forming a free trade area among these countries.

Accepted Answer

NAFTA (North American Free Trade Agreement) is an agreement among the United States, Canada, and Mexico only. Argentina and Chile are not part of NAFTA.

Question 5

While the World Trade Organization had 155 member countries which represent over 97 percent of all world trade, the market formed by NAFTA has more than 465 million people and an annual output of $18.1 trillion in goods and services.

Accepted Answer

This statement is true. The World Trade Organization has 164 member countries as of 2021, but in the past it had 155 members. NAFTA (North American Free Trade Agreement) is a regional trade agreement between the United States, Canada, and Mexico, and it encompasses a market of over 465 million people with an annual output of $18.1 trillion.

Question 6

NAFTA includes provisions reducing tariff and nontariff barriers and toughening health and safety standards.

Accepted Answer

NAFTA (North American Free Trade Agreement) aimed to promote trade between the United States, Canada, and Mexico by reducing tariff and nontariff barriers and establishing common health and safety standards.

Question 7

The North American Free Trade Agreement (also known as NAFTA) served to ________.

Accepted Answer

The North American Free Trade Agreement (NAFTA) created a unified market of 465 million people and $18.1 trillion in goods and services between Mexico, Canada, and the United States. It eliminated tariffs and other trade barriers, making it easier and cheaper to trade between member nations. While there may have been some benefits to the trading relationship between Canada and the United States, it was designed to benefit all member nations. Option A is incorrect as South America is not included in NAFTA, and Option B is incorrect as NAFTA eliminated tariffs among member nations without raising them for non-members.

Question 8

Currently, the World Trade Organization (WTO) had 155 member countries that represent over ________ percent of all world trade.

Accepted Answer

The World Trade Organization (WTO) members account for over 97% of world trade, making it a significant global trade organization.

Question 9

Identify and discuss the international barriers to trade.

Accepted Answer

The answer of Identify and discuss the international barriers to...

Question 10

An important guideline for companies wanting to successfully compete internationally is to appeal to the similarities within the various regions in which you operate, but recognize the differences in their specific cultures.

Accepted Answer

It is important to find common ground and similarities between different regions for a successful international business strategy. However, it's equally important to recognize and adapt to the cultural differences within each region.

Question 11

Which of the following is a guideline for becoming a successful international competitor?

Accepted Answer

All three options are important guidelines for becoming a successful international competitor. Making oneself comfortable in all major markets, becoming familiar with foreign customs and languages, and considering partnerships and joint ventures all help a company effectively enter and succeed in foreign markets.

Question 12

A free trade area is an association of countries that have agreed to knock down trade barriers (both tariff and nontariff) among partner nations.

Accepted Answer

A free trade area is a group of countries that have agreed to eliminate trade barriers among themselves, which can include both tariffs (taxes on imports) and nontariff barriers (such as quotas or regulations). This allows for easier trade and increased economic cooperation among member nations.

Question 13

Describe the other barriers to trade, including political, business, and cultural.

Accepted Answer

The answer of Describe the other barriers to trade, including...

Quiz 15: Global Opportunities