ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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to create a strategic alliance between countries in North America
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to create a defensive alliance between countries in North America
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to eliminate barriers to trade between countries in North America
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to eliminate barriers to immigration between countries in North America
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Detailed explanation-1: -NAFTA’s purpose was to encourage economic activity among North America’s three major economic powers: Canada, the U. S., and Mexico. Proponents of the agreement believed that it would benefit the three nations involved by promoting freer trade and lower tariffs among Canada, Mexico, and the United States.
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: -In short, NAFTA created a large free-trade zone reducing or eliminating tariffs on imports and exports between the three participating countries (the U.S, Mexico, and Canada). Overall, there was an increase in trade between the three countries, and real per-capita GDP also increased slightly.
Detailed explanation-4: -The major purpose of the passage of the North American Free Trade Agreement was to: promote freer trade with Canada and Mexico. The United States entered the 1990s: as the world’s only remaining superpower.
Detailed explanation-5: -The goal of NAFTA was to eliminate barriers to trade and investment between the U.S., Canada and Mexico.