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.

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.

Changes in consumer food preferences from corn toward wheat reduced demand.
Changes in consumer food preferences from corn toward wheat reduced demand.

Answer 1

The impact of NAFTA (North American Free Trade Agreement) on Mexican corn farmers was primarily negative, leading to significant losses in livelihoods for many within this sector. The most pertinent reason is:

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

Under NAFTA, U.S. corn—often sold at lower prices due to substantial government subsidies—flooded the Mexican market. Mexican farmers found it increasingly difficult to sell their corn at competitive prices, as they did not have access to similar levels of subsidies, leading to reduced income and, in many cases, the abandonment of their farming endeavors altogether.

The other responses provided, while they reflect some changes that occurred, do not directly address the core reason for the hardship experienced by Mexican corn farmers as a result of NAFTA. The option regarding manufacturing jobs leaving Mexico due to lower wages is relevant in the broader context of economic shifts but does not address the direct competition in corn production. Changes in consumer preferences towards wheat also played a role in the overall agricultural landscape but were not a primary driver of the hardships faced by corn farmers under NAFTA.