Diana's firm makes pumps and valves,and it has begun expanding internationally.A firm in Argentina responded to the company's website to inquire about becoming a distributor for the firm,and Diana is trying to analyze the opportunity.In her analysis,she will look at the implications of Argentina's membership in:

Question

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Mercosur (South American Common Market) is a customs union comprising Argentina, Brazil, Paraguay, Uruguay, and Venezuela. As Argentina is a member of Mercosur, it has established a common external tariff in trade with non-member countries. This means that Diana's firm will need to consider the tariff rates and regulations established by Mercosur when exporting to Argentina. In contrast, NAFTA (North American Free Trade Agreement) and CAFTA (Central American Free Trade Agreement) only apply to North America and Central America, respectively, while ASEAN (Association of Southeast Asian Nations) is a regional intergovernmental organization in Southeast Asia. Thus, they are not relevant to Diana's analysis in this case.

Diana's Firm Makes Pumps and Valves,and It Has Begun Expanding