The impact of NAFTA on Mexican corn farmers was significant, and many of them lost their livelihoods as a consequence. This can be attributed to various factors:
1. Manufacturing jobs that processed the corn left Mexico for the U.S. due to lower wages, reducing the need for Mexican-grown corn. With the implementation of NAFTA, American companies found it more cost-effective to shift their corn processing operations to Mexico, where labor costs were significantly lower. This resulted in a decreased demand for Mexican-grown corn, leading to a decline in prices and profitability for Mexican farmers.
2. NAFTA gave subsidies to Mexican corn farmers to increase production, which flooded the market. In an attempt to promote agricultural growth in Mexico, NAFTA provided subsidies to Mexican corn farmers, encouraging increased production and exports. However, this led to an oversupply of corn in the market, causing prices to plummet further.
3. Mexican farmers could not compete with government-subsidized U.S. corn. While Mexican corn farmers received subsidies under NAFTA, they could not compete with the heavily subsidized U.S. corn industry. The United States provided substantial financial support to its corn farmers, allowing them to produce corn at a much lower cost compared to their Mexican counterparts. This level of competition placed Mexican farmers at a disadvantage and undermined their ability to make a profit.
4. Changes in consumer food preferences from corn towards wheat reduced demand. In addition to economic factors, changes in consumer food preferences also affected Mexican corn farmers. As a consequence of economic growth and changing dietary preferences, there was a shift in demand from corn-based products towards wheat-based products. This change further reduced the demand for Mexican-grown corn, leaving farmers with fewer buyers for their produce.
Overall, the combined effect of manufacturing jobs leaving Mexico, subsidies leading to oversupply, competition with U.S. corn, and changes in consumer preferences all contributed to the loss of livelihoods for many Mexican corn farmers as a consequence of NAFTA.
Analyze the impact of NAFTA on Mexican corn farmers. Why did so many Mexican corn farmers lose their livelihoods as a consequence of NAFTA?(1 point) Responses Manufacturing jobs that processed the corn left Mexico for the U.S. due to lower wages, reducing the need for Mexican-grown corn. Manufacturing jobs that processed the corn left Mexico for the U.S. due to lower wages, reducing the need for Mexican-grown corn. NAFTA gave subsidies to Mexican corn farmers to increase production, which flooded the market. NAFTA gave subsidies to Mexican corn farmers to increase production, which flooded the market. Mexican farmers could not compete with government-subsidized U.S. corn. Mexican farmers could not compete with government-subsidized U.S. corn. Changes in consumer food preferences from corn toward wheat reduced demand.
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