Which statement below is NOT an economic impact of free trade agreements in North America?(1 point)

Question

Responses

Economic collaboration through intercontinental trade has created a bloc among North American countries.
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.
Mexican businesses have relocated to the United States where labor costs are lower.

The largest market for Canada's agricultural exports is the United States.
The largest market for Canada's agricultural exports is the United States.

Elimination of tariffs between member nations reduces the cost of goods.

Answer 1

The statement that is NOT an economic impact of free trade agreements in North America is:

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

This statement is incorrect because generally, businesses do not relocate to areas with higher labor costs; rather, they often seek to relocate to areas with lower labor costs. Thus, the relocation of Mexican businesses to the U.S. due to lower labor costs is not an accurate depiction of the impacts of free trade agreements.