As a result of CFTA,the U.S.automakers participate in the Canadian auto market,thereby benefiting due to:
A) greater economies of scale.
B) decreased production costs.
C) reduced competition.
D) ease of exporting automobiles.
E) creating a continental demand.

Question

Quizplus · Accepted Answer

The Canada-United States Free Trade Agreement (CFTA) allows U.S. automakers to access a larger market, which can lead to greater economies of scale by spreading fixed costs over a larger number of units produced.

As a Result of CFTA,the U