ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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increased taxes
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increased tariffs
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increased inflation
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increased pollution
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Detailed explanation-1: -Foreign investment increased greatly following the passage of NAFTA, with billions of dollars yearly being invested in Mexico. This foreign investment manifested in an increase in manufacturing as a share of Mexican exports, with exports to the United States increasing to 88.66 percent of Mexican exports by 2001.
Detailed explanation-2: -They argued that the new rules and regulations NAFTA would impose would undermine local government’s power. They were also worried that environmental and health standards would drop. Family farmers feared they would be displaced and there would be huge job losses across North America.
Detailed explanation-3: -Opponents often assert that free trade invites foreign competition with domestic industries, causing job loss and harming key industries. In some cases, free trade cause manufacturers to move their operations to countries with fewer regulations, rewarding companies that cause pollution or use abusive labor practices.
Detailed explanation-4: -Key Takeaways. Some of the positive effects of NAFTA were increased trade, economic output, foreign investment, and better consumer prices. U.S. jobs were lost when domestic manufacturers relocated to lower-waged Mexico, which also suppressed wages in U.S. manufacturing plants.