Basics of FTA Quiz

What is an FTA?

• Free Trade Association

• Free Trade Agreement

• Foreign Trade Agreement

• Federal Trade Association

What do FTAs typically provide to U.S. sellers?

• Higher export duties

• Lower import duties

• Free advertising

• No competition

Which is NOT a component of free trade agreements?

• Lower import duties

• Protection of U.S. company assets abroad

• Free shipping

• Intellectual property protection

What makes U.S. products more competitive under an FTA?

• Lower production costs

• Lower import duties

• More advertising

• Higher local taxes

Which requirement might a product need to meet to qualify for lower duties?

• Made entirely in the U.S.

• Mostly manufactured in the U.S.

• Manufactured in any country

What might be required to prove the origin of your product?

• A verbal statement

• A receipt

• A certificate of origin

• A product code

What can FTAs help U.S. companies do?

• Increase tariffs

• Avoid paying taxes

• Bid on government procurements

• Get free materials

Why might verifying the origin of components be necessary?

• To avoid customs checks

• To qualify for lower duties

• To meet advertising standards

• To avoid quality checks

Where can you learn more about countries with FTAs with the U.S.?

• Department of Labor

• U.S. Embassy

• Trade.gov

• Export-Import Bank

What is a key benefit of lower duties in an FTA?

• Increased import costs

• Reduced competitiveness

• More affordable products

• Stricter regulations