SA IBL TB8e Ch14 - 2815 Words

CHAPTER 14—NORTH AMERICAN FREE TRADE LAW TRUE/FALSE 1. The NAFTA Binational Panel found that the sale of U.S. twine in Canada at unfairly low prices caused past injury to Canadian twine producers. ANS: T PTS: 1 2. In 1994, the Extraordinary Challenge Committee found that the U.S. Department of Commerce was correct in implementing countervailing duties against Canadian lumber. ANS: F PTS: 1 3. Production sharing is intended to create U.S. jobs by encouraging the use of U.S.-made components when assembly of a product takes place in a foreign country. ANS: T PTS: 1 4. In Samsonite Corporation v. United States, it was found that the luggage handles were only assembled in Mexico and therefore not subject to duties. ANS: F PTS: 1†¦show more content†¦d. Samsonite luggage did not cause serious injury to the Mexican luggage industry. ANS: B PTS: 1 2. A free trade area is: a. Two countries that have a common external tariff. b. A geographic area between two countries where there are no tariffs. c. A group of two or more countries in which import duties and other trade barriers are reduced or eliminated. d. A geographic area between two countries where tariffs are reduced, but not necessarily eliminated. ANS: C PTS: 1 3. NAFTA was based on: 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. e. None of the above. ANS: A PTS: 1 4. Harmonized tariff schedules break down product classifications into: a. 6 digits. b. 8 digits. c. 10 digits. d. 12 digits. ANS: C PTS: 1 5. Which of the following statements is untrue regarding trade between the U.S., Canada, and Mexico? 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 the above statements are correct. ANS: D PTS: 1 6. A customs union is: 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