BUSINESS ADMINISTRATION
INTERNATIONAL MARKETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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CFTA
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NAFTA
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Mercosur
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DR-CAFTA
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SAFTA
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Detailed explanation-1: -Fast facts about the world’s largest trade agreement NAFTA is now the largest free trade agreement in the world, although it’s set to be replaced by the United States-Mexico-Canada Agreement.
Detailed explanation-2: -The United States-Mexico-Canada Agreement (USMCA) entered into force on July 1, 2020. The USMCA, which substituted the North America Free Trade Agreement (NAFTA) is a mutually beneficial win for North American workers, farmers, ranchers, and businesses.
Detailed explanation-3: -The agreement creates a free trade area, not a common market. Customs administrations will still exist and goods entering Canada, Mexico or the United States must still comply with each country’s laws and regulations.
Detailed explanation-4: -The main downside of NAFTA was the loss of United States manufacturing jobs. Many jobs shifted from the United States to Mexico, as higher-paying factory jobs moved to more cost-effective regions. This was especially true in lower-skilled industries such as the automotive or textile industries.