GK
WORLD ORGANISATIONS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In 1990, 6 percent of the fruits and vegetables available in the United States 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 the 1994 North American Free Trade Agreement (NAFTA)?
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trade agreements protect domestic industries through subsidies
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a limited membership results in increased prices for trade goods
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a 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: -USMCA is primarily a modernization of the 25-year-old NAFTA, namely with respect to intellectual property and digital trade, and borrows language from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), of which Canada and Mexico are signatories.
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