ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

Detailed explanation-2: -Among its three member nations, NAFTA eliminated tariffs and other trade barriers to agricultural and manufactured goods, along with services. It also removed investment restrictions and protected intellectual property rights.

Detailed explanation-3: -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-4: -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.

Detailed explanation-5: -Passage of NAFTA resulted in the elimination or reduction of barriers to trade and investment between the U.S., Canada, and Mexico. The effects of the agreement regarding issues such as employment, the environment, and economic growth have been the subject of political disputes.