ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Mexican agriculture expanded as farmers began shipping more goods to the United States.
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Many Mexicans lost their agricultural jobs due to increased competition from the United States.
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Prices in Mexico increased due to increased tariffs on agricultural goods from the United tariffs on agricultural goods from the United States.
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Mexican agricultural trade declined due to the agreement’s quotas on trade with the United States
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Detailed explanation-1: -NAFTA boosted Mexican farm exports to the United States, which have tripled since the pact’s implementation. Hundreds of thousands of auto manufacturing jobs have also been created in the country, and most studies have found [PDF] that the agreement increased productivity and lowered consumer prices in Mexico.
Detailed explanation-2: -The labor side agreement within NAFTA also affected the ability of workers to organize into unions, which in turn affected the quality of work available for workers. This agreement, along with the rest of NAFTA, made it harder for the Mexican government to neglect following its own labor laws.
Detailed explanation-3: -North American Free Trade Agreement (NAFTA) established a free-trade zone in North America; it was signed in 1992 by Canada, Mexico, and the United States and took effect on Jan. 1, 1994. NAFTA immediately lifted tariffs on the majority of goods produced by the signatory nations.
Detailed explanation-4: -NAFTA, which stands for the North American Free Trade Agreement, created the world’s largest tariff-free zone, allowing for free trade between the three countries and modernizing Mexico’s economy in the process.