Some believe NAFTA has been a “failure”, including President Trump, and has had negative outcomes, particularly...

Some believe NAFTA has been a “failure”, including President Trump, and has had negative outcomes, particularly for the US. What negative outcomes for the US have been raised?

Expert Solution

There are two main negative outcomes are cited by different people and leaders regarding Nafta, they are:

Loss of manufacturing industries: Nafta has allowed the manufacturers in the US to shift their base to other countries like Mexico where the manufacturing cost is low because of their lower wage rates. This has shifted almost entire manufacturing industries of automobiles and other goods to Mexico. resulting in very less manufacturing activity in the US.
Loss of Jobs: Because the wages are low in the neighboring countries they attract more and more industries and benefit from their comparative advantage. This leaves the people in the US unemployed. NAFTA is seen behind this outsourcing of jobs because under Nafta the US can't impose any tariffs on these incoming products which will give the local industry some leverage to compete in the market.
Wages in the US were suppressed because of Nafta. TO compete against the low wages in Mexico, the wages in the US were suppressed to make the local industries competitive. This reduced wages caused a lot of problems for the local working population.

Rahul Sunny answered 2 years ago

Is the new trade agreement negotiated by President Trump with Mexico and Canada to replace NAFTA...

Is the new trade agreement negotiated by President Trump with Mexico and Canada to replace NAFTA more beneficial or more harmful to the United States economy than NAFTA?

What are some ways that trump and president Andrew Jackson had similar foreign policies?

Find out why President Trump proposed renegotiating NAFTA. Provide two arguments for doing so. Analyze these...

Find out why President Trump proposed renegotiating NAFTA. Provide two arguments for doing so. Analyze these arguments using the concepts of absolute advantage, opportunity cost, and comparative advantage. Do you think comparative advantage and absolute advantage are the best reasons for seeking trade with others? Why or why not?

President Trump wants to renegotiate The North American Free Trade Agreement (NAFTA). What do you see...

President Trump wants to renegotiate The North American Free Trade Agreement (NAFTA). What do you see as short-term and long-term trade effects? How will renegotiation of NAFTA impact the United States balance of trade and trade deficit.

Only 4 in 10 registered voters believe that President Donald Trump is fit for office. While...

Only 4 in 10 registered voters believe that President Donald Trump is fit for office. While 86 percent of self-identified Republicans said Trump is fit to serve, an overwhelming 93 percent of Democrats said the OPPOSITE. The survey of 1577 voters was conducted. It has a margin of error of plus or minus 3%. b. Construct the 95% CI estimate of the population proportion of registered voters who believe the President is fit for office. c. Explain why NEITHER the...

Make a Constitutional-legal Argument as to whether or not President Trump had the constitutional authority to...

Make a Constitutional-legal Argument as to whether or not President Trump had the constitutional authority to use National Emergency. Legislation to divert Federal Funds appropriated for Construction in the Defense Department and divert that money to construction of the border wall.

It has been observed that some persons who suffer renal failure, again suffer renal failure within...

It has been observed that some persons who suffer renal failure, again suffer renal failure within one year of the first episode. This is due, in part, to damage from the first episode. The performance of a new drug designed to prevent a second episode is to be tested for its effectiveness in preventing a second episode. In order to do this two groups of people suffering a first episode are selected. There are 75 people in the first group...

Some scientists believe that fructose is particularly bad for human health because it promote fat synthesis,...

Some scientists believe that fructose is particularly bad for human health because it promote fat synthesis, contributing to development of type II diabetes and fatty liver disease. You are a scientist working for a lab attempting to develop a drug to help with such diseases called fructono. The idea is that fructono could be added to the diet to reduce fructose absorption; even though fructono would be absorbed, it would not be metabolized, and would be excreted by the kidney....

The potential of a trade war has sent turbulence in the financial market as President Trump...

The potential of a trade war has sent turbulence in the financial market as President Trump has asked for additional tariffs on $200 billion imports from China. Why is Warren Buffett so confident that the tension will be resolved? Why is he not worried about trade wars??

1. Marijuana has been legalized in several states. Some people believe this has resulted in an...

1. Marijuana has been legalized in several states. Some people believe this has resulted in an increase of impaired drivers on the road and that traffic fatalities have increased as a result. While some drug tests taken at the scene of accidents do indicate the presence of marijuana, such tests only reveal that the drug has been used -- they do not indicate actual intoxication, as indicators of marijuana use can stay in the system for days or even weeks...

Question