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b. Commerce Clause of US Constitution.

The US government has the exclusive power to regulate trade among states and with foreign nations. This power is derived from:

a. NAFTA Fair Trade Commission.

The formal attempted resolution of disputes arising from interpretation of NAFTA is conducted by:

a. Allowing expropriation only if made for a public purpose and investor is later paid fair compensation.

A US company has its assets seized in Mexico for failure to obtain a business permit. The US company is outraged and wants to know if NAFTA allows this. You advise that NAFTA protects alien investors from expropriation by:

b. Telephones, cellular phones, and trade in telecommunications equipment.1

AT&T and other US companies benefitted in 2004 immensely when NAFTA eliminated all tariffs on:

a. A certificate of origin.

All shipments of goods between the US, Canada and Mexico must contain a written "promise" that the goods originated in North America in order to qualify for preferential treatment under NAFTA. This "promise" is called:

mexico

The largest trading partner of the US in 2015 in the two-way trade of goods and services was:

b. Technical regulations and standards for a product imported into the notifying country.

NAFTA mandates that written notice with a comment-period opportunity be given to all members if a nation wishes to change the:

a. 6.0% determined by an "averaging of rates" analysis between US rate and Mexican rates.

Brazilian companies export shoes made there to the Mexico and a 4.0% tariff is applied by Mexico. (The US imposes an 8.0% tariff on those same shoes if imported.) A Mexican company then immediately re-exports those shoes to the US and claims they are entitled to a preferential NAFTA tariff rate of 0.0%. The US will claim the applicable tariff rate is:

c. Less than 6.0%

Countries A, B, C and D enter into a customs union for free trade (i.e., 0.0 % tariff) for goods crossing the border within the group. Widgets from Country E are imported into Country A and a 6.0% ad valorem tariff rate is applied on each imported widget. When A exports the widgets into B, C, or D, those nations will apply a tariff rate of:

c. Production sharing.

The process of spreading manufacturing and assembly operations across international borders is called:

d. Customs union.

In a ______, there is free trade in all goods that comes into the group through any of the members, even for original, tariffed imports from outside the group which are then re-exported.

d. The "substantial transformation test."

If goods are produced or assembled in more than one country, the country of origin must be determined to determine preferential tariff treatment under NAFTA. This determination is typically made by application of:

c. US jobs leaving the US for lower wages in Mexico would create a "giant sucking sound."

Ross Perot was an independent candidate for President in 1990s who opposed the US entering into the North American Free Trade Agreement (NAFTA.) His famous comment that after entering into NAFTA there would be as a result a "giant sucking sound" referred to:

10%

Sweaters are made in Mexico. The Mexican manufacturer then imports South African-manufactured buttons into Mexico and sews them into the product for the first time after which they are then exported across the border to a US buyer. Under NAFTA rules, this sweater will be eligible for NAFTA preferential rates if the South African buttons represent at most _______ of the total cost of the sweater.

b. No, NAFTA has allowed financial service companies to locate in Mexico, acquire 100% of local institutions (including insurance companies) and mandates nondiscriminatory treatment.

United States and Canadian banks and other companies offering financial services wish to open offices in Mexico to obtain customers there. Does NAFTA restrict this?

d. Free Trade Area.

When two or more countries agree to eliminate or to phase out customs duties and other barriers to trade among member countries this is called a: