ECONOMICS
ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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by giving the government more control over product prices
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by giving the government more control over production quotas
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by imposing barriers to trade with Mexico and the United States
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by eliminating barriers to trade with Mexico and the United States
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Detailed explanation-1: -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-2: -As of January 1, 2008, all tariffs and quotas were eliminated on U.S. exports to Mexico and Canada under the North American Free Trade Agreement (NAFTA). Mexico is the United States’ third largest trading partner and second largest export market for U.S. products.
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 is a comprehensive trade agreement that improves virtually all aspects of doing business within North America. NAFTA will eliminate tariffs completely, and removes many of the non-tariff barriers, such as import licenses, that have helped to exclude U.S. goods from the other two markets, especially Mexico.
Detailed explanation-5: -An important tool to support Canada’s economic recovery is its vast network of free trade agreements (FTAs) that covers 61% of the world’s GDP in 51 countries and opens doors to 1.5 billion consumers.