Trade agreements like the USMCA help supply chains in which of the following ways? (select all that apply)

Question

BlackTom AI · Accepted Answer

When evaluating how trade agreements like the USMCA influence supply chains, it helps to separate the concrete mechanisms from less relevant claims.
Option: None of these. This statement is incorrect because USMCA does have tangible effects on supply chains, notably through tariff reductions and smoother cross-border movement, so claiming that none of the listed benefits exist is inaccurate.
Option: Easier transfer of products across borders. This is a core feature of modern trade agreements. By setting rules of origin, harmonizing certain standards, and simplifying customs procedures, such agreements reduce frictions and delays at borders, enabling quicker and more predictable movement of goods.
Option: Reduction in tariffs and taxes. A primary objective of such agreements is to lower or eliminate tariffs for eligible goods traded between member countries. Lower tariffs directly reduce landed costs, improve pricing, and encourage more regional sourcing and intra-regional shipments, which strengthens supply chains.
Option: Reduced environmental controls. This claim is typically false or at least misleading as a blanket statement. While some agreements may include environmental standards and commitments, they do not generally permit a broad reduction of environmental controls. In many cases, the goal is to raise or harmonize environmental and labor standards, or to include environmental provisions, rather than to relax controls. Therefore, this option does not accurately reflect the typical effects of USMCA on supply chains.
In summary, the verifiable ways the USMCA supports supply chains are through easier cross-border transfers and tariff reductions, while claiming reduced environmental controls misstates the intent and design of such agreements.

BUSML 3380 AU2025 (2040) Midterm Exam - Requires Respondus LockDown Browser

Trade agreements like the USMCA help supply chains in which of the following ways? (select all that apply)

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