To avoid tariffs, a Japanese firm moves its final assembly line to Mexico and then ships the final products to Canada. This is an example of
A) trade deflection.
B) trade diversion.
C) protectionism.
D) rules of origin.
Answer: A
You might also like to view...
If the fundamental value of the nominal exchange rate equals 0.20 U.S. dollars per franc, but the franc is officially fixed at 0.15 U.S. dollars per franc, then the franc exchange rate is ________ and to maintain this exchange rate there will be ________ in the government's stock of international reserves.
A. undervalued; a net increase B. undervalued; a net decline C. overvalued; a net increase D. overvalued; a net decline
Which of the following kinds of agreements between two or more countries would be an example of a deep integration measure?
A) An agreement to reduce tariffs and quotas B) An agreement to unify customs forms in order to speed up cross-border traffic C) An agreement to impose the same limits on cartels and monopolies D) An agreement to reduce exports E) An agreement to limit imports
Most recessions in the United States since World War II have begun with a
A) rise in oil prices. B) stock market crash. C) a major devaluation of the dollar. D) decline in residential construction.
A tax on buyers shifts the demand curve to the right
a. True b. False Indicate whether the statement is true or false