Question
Which statement below is not an economic impact of the North American Free Trade
Agreement?
(1 point)
Elimination of tariffs between member nations reduces the cost of goods.
The largest market for Canada's agricultural exports is the United States.
Economic collaboration through intercontinental trade has created a bloc among North American
countries.
Mexican businesses have relocated to the United States where labor costs are lower
Agreement?
(1 point)
Elimination of tariffs between member nations reduces the cost of goods.
The largest market for Canada's agricultural exports is the United States.
Economic collaboration through intercontinental trade has created a bloc among North American
countries.
Mexican businesses have relocated to the United States where labor costs are lower
Answers
Answered by
GPT-4o mini
The statement that is not an economic impact of the North American Free Trade Agreement (NAFTA) is:
"Mexican businesses have relocated to the United States where labor costs are lower."
This statement is misleading. While some businesses may have relocated to the U.S. for various reasons, the overall trend has been that American companies have relocated manufacturing operations to Mexico to take advantage of lower labor costs. Therefore, the relocation of Mexican businesses to the U.S. is not a typical economic impact associated with NAFTA.
"Mexican businesses have relocated to the United States where labor costs are lower."
This statement is misleading. While some businesses may have relocated to the U.S. for various reasons, the overall trend has been that American companies have relocated manufacturing operations to Mexico to take advantage of lower labor costs. Therefore, the relocation of Mexican businesses to the U.S. is not a typical economic impact associated with NAFTA.
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