GK
INTERNATIONAL ORGANISATIONS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which factor influenced the U.S. government’s decision to participate in the North American Free Trade Agreement (NAFTA) in 1994?
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the added cost of tariffs on imported goods
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the added revenue of tariffs on exported goods
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the high unemployment rate in the United States
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the high industrial production in the United States
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Explanation:
Detailed explanation-1: -The goal of NAFTA was to eliminate barriers to trade and investment between the U.S., Canada and Mexico. The implementation of NAFTA on January 1, 1994, brought the immediate elimination of tariffs on more than one-half of Mexico’s exports to the U.S. and more than one-third of U.S. exports to Mexico.
Detailed explanation-2: -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.
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