BUSA 356 Hot Topics

How do FTAs support digital trade?

• By adding customs duties on digital products

• By ensuring data protection and free information flow

• By blocking international data sharing

• By banning online transactions

Which of the following is NOT a way FTAs streamline trade?

• Reducing paperwork

• Removing red tape

• Simplifying customs procedures

• Increasing border delays

NAFTA stands for the North America Free Trade Agreement, but an updated version called USMCA came into force in 2020. This stands for:

• Universal Standards for Manufacturing and Commerce Agreement

• Unified Supply Chain and Market Agreement

• Universal Services and Consumer Market Access

• United States Mexico Canada Agreement

What year was the Maastricht Treaty signed?

• 1991

• 1992

• 1993

• 1994

Why was USMCA implemented in place of NAFTA?

• President Trump believed the NAFTA was ineffective and would lead to economic collapse

• Canada and USA were losing their jobs to foreign workers in Mexico, because of increased mobility provisions

• All US and Canadian companies moved production to Mexico for lower costs, making it insignificant

• President Trump renegotiated NAFTA, aiming to bring back US manufacturing jobs

When did the European Union win a Nobel Peace Prize?

• 2003

• 2009

• 2012

• 2017

FTAs help SMEs protect their patents, trademarks, and copyrights in member countries. This is an example of a way that FTAs:

• Provide safeguards against unfair treatment

• Simplify customer procedures

• Protect intellectual property

• Increase global mobility

How do trade agreements help SMEs increase market access?

• By imposing stricter trade barriers to protect domestic businesses.

• By opening up new markets and eliminating trade barriers.

• By limiting SMEs to only local consumers.

• By discouraging international trade among member countries.

What is one major challenge SMEs face under trade agreements?

• Easy access to international markets

• Complex regulatory compliance

• Excess financial resources

• Stronger bargaining power than large firms