Question 1

Which of the following arguments was not raised in opposition to NAFTA?

Accepted Answer

A)  By creating a regional trading block, NAFTA would strengthen GATT's global trade liberalization achievements 
B)  NAFTA would permit firms to take advantage of weaker environmental laws and low cost labor by locating plants in Mexico 
C)  NAFTA would allow U.S. products and advertising to weaken the distinctive cultures and traditions of Canada and Mexico 
D)  NAFTA would cause Mexican companies to suffer in competition against larger and better capitalized U.S. and Canadian firms 
A)  By creating a regional trading block, NAFTA would strengthen GATT's global trade liberalization achievements 
B)  NAFTA would permit firms to take advantage of weaker environmental laws and low cost labor by locating plants in Mexico 
C)  NAFTA would allow U.S. products and advertising to weaken the distinctive cultures and traditions of Canada and Mexico 
D)  NAFTA would cause Mexican companies to suffer in competition against larger and better capitalized U.S. and Canadian firms

Question 2

Compare and contrast the NAFTA dispute resolution procedures with those of U.S.courts and the EU.

Accepted Answer

The NAFTA dispute resolution procedures,

Question 3

Which of the following statements is untrue regarding emergency safeguard actions under NAFTA?

Accepted Answer

A)  Special safeguards for textiles may be applied where increased imports cause "serious damage" to the domestic industry. 
B)  Safeguards are available for ten years for certain agricultural products. 
C)  The country using them must offer the exporting country trade compensation. 
D)  Safeguards can take the form of both tariffs and quotas. 
A)  Special safeguards for textiles may be applied where increased imports cause "serious damage" to the domestic industry. 
B)  Safeguards are available for ten years for certain agricultural products. 
C)  The country using them must offer the exporting country trade compensation. 
D)  Safeguards can take the form of both tariffs and quotas.

Question 4

Appeals of a binational panel decision may be taken to:

Accepted Answer

A)  The World Trade Organization. 
B)  the court of law in the country in which the dispute took place. 
C)  The Extraordinary Challenge Committee. 
D)  The NAFTA Fair Trade Commission. 
A)  The World Trade Organization. 
B)  the court of law in the country in which the dispute took place. 
C)  The Extraordinary Challenge Committee. 
D)  The NAFTA Fair Trade Commission.

Question 5

Regarding marking and labeling rules in Mexico:

Accepted Answer

A)  the cost of complying with the rules is so costly that many small companies cannot afford to sell their products in Mexico. 
B)  product warranties must be clearly stated. 
C)  exporters to Mexico need to seek good advice in labeling and marking products to avoid long delays in getting their goods to markets in Mexico. 
D)  there are specific labeling requirements for certain products. 
E)  all of these are true. 
A)  the cost of complying with the rules is so costly that many small companies cannot afford to sell their products in Mexico. 
B)  product warranties must be clearly stated. 
C)  exporters to Mexico need to seek good advice in labeling and marking products to avoid long delays in getting their goods to markets in Mexico. 
D)  there are specific labeling requirements for certain products. 
E)  all of these are true.

Question 6

Two U.S.groups that have tended to oppose NAFTA are labor unions and the Free Enterprise Institute.

Accepted Answer

A) True 
 B)False

Question 7

Regarding trade in services under NAFTA:

Accepted Answer

A)  no NAFTA country can require a North American service provider to have a residence or office within its border. 
B)  the most important impact of NAFTA's financial services provisions is that they open Mexican financial service industries to investment by Canada and the United States. 
C)  NAFTA does not affect regulations applied to purely domestic truck or bus transportation. 
D)  NAFTA eliminated all tariffs on telephones, cellular phones, and trade in communications equipment in 2004. 
E)  all of these are correct. 
A)  no NAFTA country can require a North American service provider to have a residence or office within its border. 
B)  the most important impact of NAFTA's financial services provisions is that they open Mexican financial service industries to investment by Canada and the United States. 
C)  NAFTA does not affect regulations applied to purely domestic truck or bus transportation. 
D)  NAFTA eliminated all tariffs on telephones, cellular phones, and trade in communications equipment in 2004. 
E)  all of these are correct.

Question 8

A free trade area is a group of two or more sovereign countries in which import duties and other trade barriers are reduced or eliminated.

Accepted Answer

A) True 
 B)False

Question 9

NAFTA was based on:

Accepted Answer

A)  the U.S.-Canada Free Trade Agreement. 
B)  the General Agreement on Tariffs and Trade. 
C)  the Generalized System of Preferences. 
D)  the North American Agreement on Labor Cooperation. 
A)  the U.S.-Canada Free Trade Agreement. 
B)  the General Agreement on Tariffs and Trade. 
C)  the Generalized System of Preferences. 
D)  the North American Agreement on Labor Cooperation.

Question 10

NAFTA eliminated all tariffs on telephones,cellular phones,and trade in communicates equipment in 2004.

Accepted Answer

A) True 
 B)False

Question 11

NAFTA tolerates the imposition of regulations when they are based on health or safety standards and are not implemented as non-tariff barriers.

Accepted Answer

A) True 
 B)False

Question 12

In Kirk v.New York State Education Department,the court compared the NAFTA provision about professional licensing of veterinarians to that of New York and ruled that under the Supremacy Clause of the U.S.Constitution,the NAFTA provision preempted the New York law.

Accepted Answer

A) True 
 B)False

Question 13

The North American Agreement on Labor Cooperation promotes:

Accepted Answer

A)  freedom of association. 
B)  restrictions on child labor. 
C)  equal pay for men and women. 
D)  prohibition of forced labor. 
E)  all of these are correct. 
A)  freedom of association. 
B)  restrictions on child labor. 
C)  equal pay for men and women. 
D)  prohibition of forced labor. 
E)  all of these are correct.

Question 14

Compare and contrast the major rules on trade in textiles,automobiles,and agriculture.

Accepted Answer

The major rules on trade in textiles, au

Question 15

U.S.businesspeople complain that the quality of manufactured goods in the Mexican maguiladoras plants are below industry standards.

Accepted Answer

A) True 
 B)False

Question 16

A customs union is:

Accepted Answer

A)  a group of customs laws intended to reduce tariffs and stimulate trade. 
B)  a free trade area with a common external tariff. 
C)  a free trade area with no tariffs between the member nations. 
D)  a union of nations that promotes lower tariffs for international trade. 
A)  a group of customs laws intended to reduce tariffs and stimulate trade. 
B)  a free trade area with a common external tariff. 
C)  a free trade area with no tariffs between the member nations. 
D)  a union of nations that promotes lower tariffs for international trade.

Question 17

Sectoral issues are issues of concern to a particular industrial,agricultural,or service sector of the economy.

Accepted Answer

A) True 
 B)False

Question 18

NAFTA sets environmental standards for all three countries that were met in 2004.

Accepted Answer

A) True 
 B)False

Question 19

For most products undergoing a transformation in North America,the rule of origin is based on its tariff classification.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements is untrue regarding trade between the U.S.,Canada,and Mexico?

Accepted Answer

A)  Canada and the United States are each other's largest trading partners. 
B)  Mexico underwent a serious financial crisis in 1994. 
C)  Some key industries in Mexico are government-owned monopolies. 
D)  Mexico has had a traditionally open market that encourages foreign investment. 
E)  All of these statements are correct. 
A)  Canada and the United States are each other's largest trading partners. 
B)  Mexico underwent a serious financial crisis in 1994. 
C)  Some key industries in Mexico are government-owned monopolies. 
D)  Mexico has had a traditionally open market that encourages foreign investment. 
E)  All of these statements are correct.

Exam 14: North American Free Trade Law

Which of the following arguments was not raised in opposition to NAFTA?

Compare and contrast the NAFTA dispute resolution procedures with those of U.S.courts and the EU.

Which of the following statements is untrue regarding emergency safeguard actions under NAFTA?

Appeals of a binational panel decision may be taken to:

Regarding marking and labeling rules in Mexico:

Two U.S.groups that have tended to oppose NAFTA are labor unions and the Free Enterprise Institute.

Regarding trade in services under NAFTA:

A free trade area is a group of two or more sovereign countries in which import duties and other trade barriers are reduced or eliminated.

NAFTA was based on:

NAFTA eliminated all tariffs on telephones,cellular phones,and trade in communicates equipment in 2004.

NAFTA tolerates the imposition of regulations when they are based on health or safety standards and are not implemented as non-tariff barriers.

In Kirk v.New York State Education Department,the court compared the NAFTA provision about professional licensing of veterinarians to that of New York and ruled that under the Supremacy Clause of the U.S.Constitution,the NAFTA provision preempted the New York law.

The North American Agreement on Labor Cooperation promotes:

Compare and contrast the major rules on trade in textiles,automobiles,and agriculture.

U.S.businesspeople complain that the quality of manufactured goods in the Mexican maguiladoras plants are below industry standards.

A customs union is:

Sectoral issues are issues of concern to a particular industrial,agricultural,or service sector of the economy.

NAFTA sets environmental standards for all three countries that were met in 2004.

For most products undergoing a transformation in North America,the rule of origin is based on its tariff classification.

Which of the following statements is untrue regarding trade between the U.S.,Canada,and Mexico?

Introduction to International Business

International Law and the World's Legal Systems

Resolving International Commercial Disputes

The Formation and Performance of Contracts for the Sale of Goods

The Documentary Sale and Terms of Trade

Legal Issues in International Transportation

Bank Collections and Letters of Credit

National Lawmaking Powers and the Regulation of U.S.Trade

The World Trade Organization: Basic Legal Principles

Laws Governing Access to Foreign Markets

Regulating Import Competition and Unfair Trade

Imports,Customs,and Tariff Law

Export Controls and Sanctions

The European Union

Marketing: Representatives,Advertising,and Anti-Corruption

Protection and Licensing of Intellectual Property

The Legal Environment of Foreign Direct Investment

Labor and Employment Discrimination Law

Environmental Law

Regulating the Competitive Environment

Filters