Question 1: Analyze the impact of NAFTA on Mexican corn farmers. Why did so many Mexican corn farmers lose their livelihoods as a consequence of NAFTA?
The correct answer is: Mexican farmers could not compete with government-subsidized U.S. corn.
NAFTA removed trade barriers between the U.S., Canada, and Mexico, allowing for increased imports of U.S. corn into Mexico. The U.S. corn was often cheaper due to government subsidies, making it difficult for local Mexican farmers to compete, leading many to lose their livelihoods.
Question 2: How do quotas protect local producers?
The correct answer is: Quotas limit the goods that can be imported, which ensures less competition for local producers.
Quotas restrict the quantity of goods that can be imported, reducing the competition that local producers face and allowing them to maintain a larger market share.
Question 3: Which option best analyzes how exchange becomes more efficient at a national scale?
The correct answer is: Places within a country specialize based on comparative advantage, meanwhile better technologies enable exchange.
This option reflects how specialization based on comparative advantage and the development of better technologies can enhance the efficiency of trade and exchange within a country.
Question 4: What type of industries are primarily involved in exchanges between rural mining towns and urban manufacturing centers that use their minerals?
The correct answer is: primary and tertiary industries.
Primary industries extract raw materials (such as minerals) in rural mining towns, while tertiary industries involve the services and processes that support the distribution and use of those minerals in urban manufacturing centers.