U.S. automakers have an interest to make it more difficult for European competitors to locate assembly plants in Canada or Mexico and thereby ship finished automobiles to the United States duty-free. This is an example of
A. rules of origin.
B. trade deflection.
C. trade diversion.
D. quotas.
Answer: A
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High and unexpected inflation has a greater cost
a. for those who save than for those who borrow. b. for those who hold a little money than for those who hold a lot of money. c. for those whose wages increase by as much as inflation than those who are paid a fixed nominal wage. d. for savers in low income tax brackets than for savers in high income tax brackets.
A country will have a balance-of-payments deficit when its exchange rate:
A. is flexible. B. is overvalued. C. equals the market equilibrium value. D. is undervalued.
Discuss the pros and cons of oligopoly from the perspective of U.S. society.
What will be an ideal response?
If Tim insures his car against theft, it will
A. have no effect on the likelihood that his car will be stolen. B. decrease his incentive to prevent his car from being stolen. C. decrease the likelihood that his car will be stolen. D. increase his incentive to prevent his car from being stolen.