Adetailed numbering system developed by the united states, canada, and mexico to classify north american business establishments by their main production processes is the nakes system. see 7-5: the north american industry classification system.

It is True

Explanation:

NAKES system is unique among the classifications of economic activities because it was developed based on a conceptual framework (that of production function or production process) that guided its construction as much as possible. In it, activities that have similar production functions are classified in the same category and those that have different production are accommodated in different ones.

It was developed following this unique principle, which allows groupings to be created systematically, always under the same logic, which helps to avoid controversies and interpretation errors.

The System consists of five levels of aggregation: sector (the most aggregate, identified with two digits), subsector (three), branch (four digits), sub-frame (five) and activity class (the most disaggregated level, identified with six digits).

It is common to try to use NAKES to classify products, if the user has that intention with certainty the classifier will disappoint his expectations because the objective of the System is to classify economic activities, not products.

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