A Mexican Friend of Yours Owns a Successful Factory That

Question 123
Multiple Choice

A Mexican friend of yours owns a successful factory that makes low-cost athletic shoes in Mexico City.Your friend tells you that his plan is to flood the American market with the shoes,and that he has absolutely no concern regarding tariff restrictions,because under the North American Free Trade Agreement,tariffs are absolutely prohibited.Do you agree? A) no, because under the North American Free Trade Agreement, a country can reinstate tariffs if an import surge from a nation that is a party to the agreement hurts the other country's economy or its workers B) no, because the North American Free Trade Agreement does not address the issue of tariffs C) no, because the North American Free Trade Agreement actually requires the imposition of tariffs D) yes, tariffs are absolutely prohibited under the North American Free Trade Agreement E) yes, but only because the North American Free Trade Agreement does not apply to consumer goods