GK
INTERNATIONAL ORGANISATIONS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In 1990, 6 percent of fruits and vegetables available in the US came from Mexico and Canada. In 2007, that percentage had increased to about 12 percent. Based on this information, which statement best describes a benefit of North American Free Trade Agreement (NAFTA)?
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trade agreements protect domestic industries through subsidies
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limited membership results in increased prices for trade goods
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reduction in tariffs encourages an increase in trade
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trade agreements require improvements in exchange rates
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Explanation:
Detailed explanation-1: -NAFTA was a landmark trade deal between Canada, Mexico, and the United States that took effect in 1994. It contributed to an explosion of trade between the three countries and the integration of their economies, but was criticized in the United States for contributing to job losses and outsourcing.
Detailed explanation-2: -1304) requires that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked with its country of origin. Paragraph 1 of Annex 311 of the NAFTA provides that the NAFTA parties shall establish “Marking Rules” to determine when a good is a good of a NAFTA country.
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