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.

Answer 1

The most accurate response regarding the impact of NAFTA on Mexican corn farmers is:

Mexican farmers could not compete with government-subsidized U.S. corn.

NAFTA, implemented in 1994, effectively reduced trade barriers between the U.S., Canada, and Mexico. While it aimed to create an open market and promote economic growth, it had significant detrimental effects on the agricultural sector in Mexico, particularly for corn farmers. U.S. corn farmers benefited from substantial government subsidies, allowing them to sell corn at lower prices. As a result, Mexican farmers faced intense competition from cheaper, subsidized U.S. corn, which made it difficult for them to sell their own produce at viable prices.

The other responses are less accurate. While there were shifts in consumer preferences and some processing jobs left Mexico, the critical factor in the decline of livelihoods for many Mexican corn farmers was the inability to compete with the prices of heavily subsidized U.S. corn. Additionally, flooded markets due to subsidies do not fit the nature of the problem which primarily stemmed from direct competition rather than oversupply from subsidies.

Answer 2

How do quotas protect local producers?(1 point)
Responses

Quotas increase competition among different countries, which lowers prices of goods.
Quotas increase competition among different countries, which lowers prices of goods.

Quotas limit the goods that can be imported, which ensures less competition for local producers.
Quotas limit the goods that can be imported, which ensures less competition for local producers.

Quotas add a fee to the price of imported goods, so they are less competitive than local products.
Quotas add a fee to the price of imported goods, so they are less competitive than local products.

Quotas help organize workers to advocate for increased protections.
Quotas help organize workers to advocate for increased protections.

Answer 3

The most accurate response regarding how quotas protect local producers is:

Quotas limit the goods that can be imported, which ensures less competition for local producers.

Quotas are regulations that set a specific limit on the quantity of a particular good that can be imported into a country. By limiting the supply of foreign goods, quotas reduce competition for domestic producers, allowing them to maintain higher prices and potentially increase their market share. This protective measure helps shield local industries from international competition that could undermine their viability.

The other responses are incorrect because:

• The first response incorrectly states that quotas increase competition; in reality, they reduce competition for local producers.
• The third response describes tariffs, which add a fee to the price of imported goods, rather than describing the function of quotas.
• The fourth response misrepresents the purpose of quotas, as their primary goal is not to organize workers but to protect local industries from external competition.

Answer 4

Which option best analyzes how exchange becomes more efficient at a national scale?(1 point)
Responses

Countries enter into treaties that encourage trade, such as the North American Free Trade Agreement.
Countries enter into treaties that encourage trade, such as the North American Free Trade Agreement.

Urban centers refocus on primary industries, leading to the development of secondary industries that encourage exchange.
Urban centers refocus on primary industries, leading to the development of secondary industries that encourage exchange.

Quaternary industries develop that benefit existing retail structures in local economies by connecting them to other places around the country.
Quaternary industries develop that benefit existing retail structures in local economies by connecting them to other places around the country.

Places within a country specialize based on comparative advantage, meanwhile better technologies enable exchange.

Answer 5

The option that best analyzes how exchange becomes more efficient at a national scale is:

Places within a country specialize based on comparative advantage, meanwhile better technologies enable exchange.

This option captures the essence of how efficiency in exchange is achieved through specialization, where different regions focus on producing goods and services in which they have a comparative advantage. This specialization leads to improved productivity and efficiency, allowing resources to be used more effectively. Simultaneously, advancements in technology—such as transportation and communication—make it easier and more cost-effective to exchange goods and services across the nation, increasing trade and economic interconnectivity.

The other options have merit but do not encapsulate the broader economic principle of comparative advantage and technological enhancement in exchange efficiency as effectively:

• Countries enter into treaties… (though it promotes trade, it doesn’t directly address specialization or efficiency in exchange at a national scale).
• Urban centers refocus on primary industries… (this is more about urban development rather than overall efficiency in exchange).
• Quaternary industries develop… (while they can enhance connectivity, this option is more specific and does not address overall exchange efficiency).

Answer 6

What type of industries are primarily involved in exchanges between rural mining towns and urban manufacturing centers that use their minerals?(1 point)
Responses

secondary and quaternary industries
secondary and quaternary industries

secondary and tertiary industries
secondary and tertiary industries

primary and secondary industries
primary and secondary industries

primary and tertiary industries

Answer 7

The type of industries primarily involved in exchanges between rural mining towns and urban manufacturing centers that use their minerals is:

primary and secondary industries.

• Primary industries refer to the extraction of natural resources, such as mining, which is the main activity in rural mining towns. These industries are responsible for obtaining the minerals.
• Secondary industries involve the processing and manufacturing of those raw materials into finished goods, which typically occurs in urban centers. This includes manufacturing processes that convert minerals into usable products.

Together, these two types of industries facilitate the exchange of raw materials from rural mining areas to urban manufacturing centers where they are transformed into finished products. The other options are less relevant in this context because:

• Tertiary industries are primarily involved in services rather than the direct exchange of raw materials and manufacturing processes.
• Quaternary industries focus on knowledge-based activities and innovation, which are not the primary types of exchanges occurring in this scenario.