Question

Which statement below is not an economic impact of the North American Free Trade Agreement?

(1 point)
Responses

Elimination of tariffs between member nations reduces the cost of goods.
Elimination of tariffs between member nations reduces the cost of goods.

The largest market for Canada's agricultural exports is the United States.
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.
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.
Mexican businesses have relocated to the United States where labor costs are lower.

Answer 1

"Mexican businesses have relocated to the United States where labor costs are lower."

This is not an economic impact of NAFTA. In fact, many U.S. and other foreign firms relocated production to Mexico to take advantage of lower labor costs there, not the other way around.