The impact of NAFTA on Mexican corn farmers was largely negative, resulting in many farmers losing their livelihoods. There are several reasons for this.
Firstly, NAFTA provided subsidies to Mexican corn farmers to increase production, which led to an oversupply of corn in the market. This flooded the market and drove down prices, making it difficult for Mexican farmers to make a profit.
Secondly, manufacturing jobs that processed corn left Mexico for the U.S. due to lower wages. This reduced the need for Mexican-grown corn, further shrinking the market for Mexican farmers.
Thirdly, there was a shift in consumer food preferences from corn towards wheat. This change in demand reduced the demand for Mexican-grown corn and added to the difficulties faced by corn farmers.
Lastly, Mexican farmers could not compete with government-subsidized U.S. corn. The U.S. government provided significant subsidies to its corn farmers, allowing them to produce corn at a lower cost. Mexican farmers, who did not have access to similar subsidies, struggled to compete with the cheaper U.S. corn.
Overall, the combination of oversupply, decreased demand, and inability to compete with subsidized U.S. corn resulted in many Mexican corn farmers losing their livelihoods as a consequence of NAFTA.
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) Responses NAFTA gave subsidies to Mexican corn farmers to increase production, which flooded the market. NAFTA gave subsidies to Mexican corn farmers to increase production, which flooded the market. Manufacturing jobs that processed the corn left Mexico for the U.S. due to lower wages, reducing the need for Mexican-grown corn. Manufacturing jobs that processed the corn left Mexico for the U.S. due to lower wages, reducing the need for Mexican-grown corn. Changes in consumer food preferences from corn toward wheat reduced demand. Changes in consumer food preferences from corn toward wheat reduced demand. Mexican farmers could not compete with government-subsidized U.S. corn. Mexican farmers could not compete with government-subsidized U.S. corn.
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