ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To reduce trade barriers among the US, Canada, and Mexico
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To reduce trade barriers among Central America and Mexico
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To reduce trade barriers among Brazil and Mexico
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To encourage free trade between the US, Europe, and Canada
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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 USMCA, which substituted the North America Free Trade Agreement (NAFTA) is a mutually beneficial win for North American workers, farmers, ranchers, and businesses. The Agreement creates more balanced, reciprocal trade supporting high-paying jobs for Americans and grow the North American economy.
Detailed explanation-3: -There were many political benefits as a result of NAFTA as well. By easing export and import requirements, Canada, the United States, and Mexico were more economically interconnected. In theory, leaders of these countries met more often to eased restrictions, emphasizing the diplomatic relationship.
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: -Increased exports. Diversified exports and increased investment from multinational companies. Job creation. 15-Feb-2020