ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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U.S. tariffs would decrease profits.
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Outsourced labor would increase prices of goods.
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U.S. companies would move jobs abroad.
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Establishment of similar treaties would hinder economic growth.
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Detailed explanation-1: -Critics also argued that the treaty would bring about a major degradation in environmental and health standards, promote the privatization and deregulation of key public services, and displace family farmers in signatory countries.
Detailed explanation-2: -Thanks to NAFTA, Mexico lost nearly 1.3 million farm jobs. The 2002 Farm Bill subsidized U.S. agribusiness by as much as 40 percent 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-3: -Key Takeaways. 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-4: -Since the North American Free Trade Agreement (NAFTA) between the United States, Mexico, and Canada went into effect, trade within North America has increased dramatically. Exports from the United States to Mexico have risen 150% and exports to Canada are up 66%.
Detailed explanation-5: -The agreement came into force on January 1, 1994. The goal of NAFTA is to eliminate all tariff and non-tariff barriers of trade and investment between the United States, Canada and Mexico.