Positive effects on economic growth

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Deb's Auto Alarms has sold car alarms in the United States for 15 years. Owner Deborah Lefkowitz has read about the opportunities that globalization presents for businesses, and she is thinking about seeking entry to several international markets. She asks you for advice: "I've heard about free trade agreements among different groups of countries: World Trade Organization (WTO), the North American Free Trade Agreement (NAFTA), the European Union (EU), the Association of Southeast Asian Nations (ASEAN), Mercosur in Latin America, the African Free Trade Zone (AFTZ). In general, it seems as though these agreements have had positive effects on economic growth, but they have also been controversial in some ways. What can you tell me about them?"

Based on your knowledge of international trade organizations, answer the following question.

Which of the following statements correctly describes the North American Free Trade Agreement (NAFTA)? Check all that apply.

A) United States, Canada, and Mexico have mixed opinions about whether NAFTA has been a success.

B) NAFTA reduced the amount of trade the countries involved.

C) NAFTA dramatically reduced tariffs on goods traded among the United States, Canada, and Mexico.

D) A drawback of NAFTA is that it has erected barriers to the entry of small businesses into the international market.

Reference no: EM132370146

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