The impact of NAFTA on Mexican corn farmers was largely negative as many of them lost their livelihoods as a consequence. One of the reasons for this was a shift in consumer food preferences from corn to wheat, reducing the demand for Mexican corn.
Another significant factor was the inability of Mexican farmers to compete with government-subsidized U.S. corn. With lower production costs and financial support from the U.S. government, American corn farmers benefited from a competitive advantage in the market, making it difficult for Mexican farmers to sell their corn at competitive prices.
Furthermore, the manufacturing jobs that processed corn also left Mexico for the United States due to lower wages, resulting in a decreased demand for Mexican-grown corn. As the processing jobs moved to the U.S., Mexican farmers faced diminishing opportunities to sell their produce.
Lastly, one of the unintended consequences of NAFTA was that it provided subsidies to Mexican corn farmers to increase production. This led to an overproduction of corn, flooding the market and subsequently lowering prices. As a result, many Mexican corn farmers saw their incomes decline or completely lost their livelihoods.
Overall, the combination of changes in consumer food preferences, competition from subsidized U.S. corn, the relocation of manufacturing jobs, and the unintended consequences of agricultural subsidies contributed to the negative impact of NAFTA on Mexican corn farmers.
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)
Changes in consumer food preferences from corn toward wheat reduced demand.
Mexican farmers could not compete with government-subsidized U.S. 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.
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