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.

Answer 1

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

This is incorrect: NAFTA tended to encourage companies (often U.S. and foreign firms) to move production to Mexico because Mexican labor costs were lower, not the other way around.