The North American Free Trade Agreement (NAFTA) has _______________ trade among Canada, the United States, and...

The North American Free Trade Agreement (NAFTA) has _______________ trade among Canada, the United States, and Mexico.

decreased

had no effect on

increased

none of the above

Solutions

Expert Solution

Answer- increased

The North American Free Trade Agreement (NAFTA) has increased trade among among Canada, United States and Mexico. NAFTA came into force in 1994 creating one of the largest free trade zones and hence laying foundation for strong economic growth for Canada, United States and Mexico. NAFTA was initiated to reduce trading costs and tarrifs so as to promote increased trade among Canada, United States and Mexico. As a result of reduced tarrifs, trade has increased significantly.

Option decreased is incorrect because when tarrifs are reduced and trading costs are lowered, trade increases and not decreases. NAFTA was signed with a purpose of reducing trading costs and tarrifs to increase trade among Canada , United States and Mexico.

Option had no effect on trade is incorrect because when trading costs and tarrifs are reduced, trade increases. These agreement are signed with a purpose of increasing trade by reducing tarrifs and trading costs. Hence, trade increases.

Rahul Sunny answered 1 year ago

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