Under the guidelines of NAFTA, cars built by Mercedes-Benz in Alabama must have 62.5 percent of their components made in North America to be able to enter Mexico and Canada duty-free. This requirement is a result of a(n) _____ that is found in the NAFTA agreement.

Question

Quizplus · Accepted Answer

The requirement for a certain percentage of components to be made in North America is a local-content law, which is a provision in trade agreements like NAFTA to encourage local manufacturing.

Under the Guidelines of NAFTA, Cars Built by Mercedes-Benz in Alabama