ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To increase trade between the countries of North America
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To help Canada become a more independent nation
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To eliminate the environmental issues between the nations involved
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None of the above
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Detailed explanation-1: -It is a free trade agreement signed by the governments of Canada, Mexico, and the United States, creating a trilateral trade bloc in North America. The goal of NAFTA is to eliminate all tariff and non-tariff barriers to trade and investment between the United States, Canada, and Mexico.
Detailed explanation-2: -The agreement came into force on January 1, 1994. The goal of NAFTA is to eliminate all tariff and non-tariff barriers of trade and investment between the United States, Canada and Mexico.
Detailed explanation-3: -Trade Volumes NAFTA’s immediate aim was to increase cross-border commerce in North America, and in that respect, it undoubtedly succeeded. By lowering or eliminating tariffs and reducing some non-tariff barriers, such as Mexican local-content requirements, NAFTA spurred a surge in trade and investment.
Detailed explanation-4: -NAFTA boosted trade by eliminating all tariffs among the three countries. It also created agreements on international rights for business investors. That reduced the cost of commerce. It spurs investment and growth, especially for small businesses.
Detailed explanation-5: -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.