Question

Considering the goals of NAFTA, evaluate whether the outcomes listed below are positive or negative for workers. Outsourcing of jobs Cheaper goods Cheap labor

Answer 1

NAFTA stands for North America Free Trade Agreement and several goals were defined under this agreement. Evaluating the outcomes of the businesses in the United States, well the first two "outsourcing job" and "cheaper goods" are advantageous. While the last one "cheaper Labor" has a negative effect on the people.

Answer 2

The correct answer is the following.

Considering the goals of NAFTA, the evaluation of the outcome of the workers of the sourcing of jobs, cheaper goods, and cheaper labor is the following.

NAFTA wanted to generate many positive factors for the three countries, Mexico, Canada, and the United States. But as always happen in free trade agreements, the reality shows many different outcomes for the three of them.

In the case of the United States workers, the positives are that in some industries, cheaper goods resulted on the importation of products have been a positive result. One disadvantage is the many jobs had been cut form factories or companies that have been taken to Canada or Mexico. One example of this is the automobile fabrics and auto parts manufacturers. Cheap labor is a consequence but basically for Mexico. When those fabrics or companies arrived in Mexico they did so because labor is cheaper in Mexico than in the U.S. or Canada. Dollars –American or Canadian- are a more solid currency than the Mexican Peso. That is the reason why many companies left the U.S. and emigrated to Canada or Mexico.

In this very moment, the Congresses of the three countries are analyzing the new free trade agreement after the revision of NAFTA. The new agreement is called “USMCA” or United States-Mexico-Canada Agreement and was signed on September 30, 2018.