One reason why most economists forecast that the effects of NAFTA on the U.S. economy would be small is because
A) NAFTA does not bring down tariffs far enough.
B) the Mexican economy is small relative to the U.S. economy.
C) NAFTA trade opening provisions only cover a handful of sectors.
D) Mexico was not expected to live up to its obligations under the agreement.
Question 2
Which of the following is an example of an antidumping duty?
A) A tariff is granted because foreign firms are selling below cost.
B) A temporary tariff is granted to allow for adjustment of the domestic industry.
C) A tariff is granted to an industry because foreign firms are subsidized by their governments.
D) A tariff is granted to an industry because another nation persistently uses unfair trade practices.
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