ECONOMICS
ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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increasing diplomatic relations between member states
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opening borders to migrant guest workers from member states
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establishing a common monetary unit among member states
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offering large economic-development loans to poorer member states
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eliminating tariffs on goods that cross borders between member states
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Detailed explanation-1: -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-2: -The North American Free Trade Agreement (NAFTA), which was enacted in 1994 and created a free trade zone for Mexico, Canada, and the United States, is the most important feature in the U.S.-Mexico bilateral commercial relationship.
Detailed explanation-3: -The correct answer is A) China. The North American Free Trade Agreement, also referred to as NAFTA, came into force in 1994 and its main goal was to promote, create and facilitate the foreign trade between Mexico, Canada, and the United States. Therefore, China was not included in it.
Detailed explanation-4: -The agreement aimed to reduce trading costs and make North America a competitive trading bloc in the global market place. NAFTA is the world’s largest trade agreement, with the three member countries reporting a gross domestic product (GDP) of more than $20 trillion.