ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Lower prices of goods
|
|
|
Outsources jobs to outside countries
|
|
|
Increase competition
|
|
|
Economic growth
|
Detailed explanation-1: -Mexico’s Farmers Were Put Out of Business Thanks to NAFTA, Mexico lost 1.3 million farm jobs. The 2002 Farm Bill subsidized U.S. agribusiness by as much as 40% of net farm income. When NAFTA removed trade tariffs, companies exported corn and other grains to Mexico below cost. Rural Mexican farmers could not compete.
Detailed explanation-2: -Some critics argue that NAFTA is to blame for job losses and wage stagnation in the U.S., because competition from Mexican firms has forced many U.S. firms to relocate to Mexico. Between 1993 and 2014, the U.S.-Mexico trade balance swung from a $1.7 billion U.S. surplus to a $54 billion deficit.
Detailed explanation-3: -U.S. Jobs Were Lost. U.S. Wages Were Suppressed. Mexico’s Farmers Went Out of Business. Maquiladora Workers Were Exploited. Mexico’s Environment Deteriorated. Free US Access for Mexican Trucks. USMCA. Frequently Asked Questions (FAQs) 20-Jan-2022
Detailed explanation-4: -NAFTA and Its Replacement. Pro 1: NAFTA lowered the price of many goods. Pro 2: NAFTA was good for GDP. Pro 3: NAFTA was good for diplomatic relations. Pro 4: NAFTA increased exports and created regional production blocs. Con 1: NAFTA led to the loss of U.S. manufacturing jobs. More items •09-Sept-2022