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)

Question

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.

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.

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.

Answer 1

The impact of NAFTA on Mexican corn farmers was largely negative, as many of them lost their livelihoods as a consequence. There are several factors that contributed to this outcome.

Firstly, under NAFTA, subsidies were given to Mexican corn farmers to increase production. However, this resulted in an oversupply of corn in the market, leading to a decrease in prices. This flood of corn in the market negatively impacted Mexican corn farmers, who were unable to sell their produce at profitable prices.

Secondly, changes in consumer food preferences played a role in the decline of Mexican corn farmers. During this period, there was a shift in consumer preferences from corn to wheat. This reduced the demand for corn, further exacerbating the difficulties faced by Mexican corn farmers.

Additionally, Mexican farmers were unable to compete with government-subsidized U.S. corn. The U.S. government heavily subsidized corn production, making it much more affordable and competitive in the market. Mexican farmers, who did not receive the same level of subsidies, struggled to keep up and were unable to compete with the lower-priced U.S. corn.

Furthermore, the loss of manufacturing jobs in Mexico also contributed to the decline of Mexican corn farmers. As manufacturing jobs that processed corn moved to the U.S. due to lower wages, there was a reduced need for Mexican-grown corn. This further impacted the demand for Mexican corn and the livelihoods of Mexican corn farmers.

Overall, the combination of subsidized U.S. corn, changes in consumer food preferences, and the loss of manufacturing jobs resulted in many Mexican corn farmers losing their livelihoods as a consequence of NAFTA.