Trade agreements like NAFTA help supply chains in which of the following ways?

Question

BlackTom AI · Accepted Answer

Question focus: trade agreements like NAFTA and how they impact supply chains. 
Option 1: Reduction in tariffs and taxes. This is a common feature of many trade agreements, as lower tariffs make cross-border sourcing and exporting cheaper and more predictable, which helps supply chains by reducing costs at the border. 
Option 2: Two of these. This option would be correct only if exactly two of the other statements were true. Since other options are not mutually exclusive in the way this wording implies, saying only two are true is misleading and does not capture the broader impact described by trade agreements. 
Option 3: Easier transfer of products across borders. Lower or standardized rules and reduced friction at customs typically accompany trade agreements, facilitating faster and more reliable movement of goods across countries, which benefits supply chains. 
Option 4: All of these. If multiple listed benefits are genuinely associated with trade agreements, this option encompasses them all; given that tariffs are reduced and cross-border transfers are eased, this option can be considered true in the context of typical trade frameworks. 
Option 5: Reduced environmental controls. In practice, trade agreements do not universally reduce environmental protections; many include environmental standards or cooperation mechanisms, and some may even tighten scrutiny in certain aspects. Therefore this option is generally inaccurate as a blanket claim about NAFTA-like agreements. 
Overall reasoning: To evaluate a supply-chain impact, one notes that tariff reductions and easier cross-border movement are standard benefits, while blanket reductions in environmental controls are not a defining or universal feature of such agreements. The statement about “two of these” relies on a misinterpretation of the inclusive nature of the benefits, and the notion of reduced environmental controls conflicts with the environmental safeguards typically addressed in trade deals.

Trade agreements like NAFTA help supply chains in which of the following ways?

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