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exis [7]
3 years ago
9

SHORT WRITING

Social Studies
2 answers:
omeli [17]3 years ago
6 0

NAFTA - North American Free Trade Agreement created a larger scope of free trade covering United States, Canada and Mexico.

Explanation:

Major positive impact of this agreement is that it tripled the trade profits of Canada, Mexico and United states. It also removed tariffs which weer considered to be the international barriers. It increased the economic output which resulted in economic growth up to 0.5 % every year. Also Foreign investments are attracted. US oil imports from mexico was considered to be beneficial as there were no tariffs imposed by  US. This had a major impact on the economy.

The transportation costs lowered due to low gas price and the food prices were also marginalized. Each nation's government contracts became available to the major suppliers which increased competition and lowered the costs.

The negative impacts are, this agreement favored import and export industry but many labor oriented industries suffered a lot which included manufacturing, textile and electronic appliances due to which many started to migrate. The companies started to reduce their wages if they refused to work for them.

NAFTA agreement totally eliminated in doing good to the farmers. It subsidized the farm products and the farmers could not make profits due to  the lower farm prices which forced them to search for many other illegal jobs. They plunged into poverty and starvation.

The next impact is the degradation of the environment in Mexico. Farmers used many chemicals and pesticides to increase the production at that short period of time which resulted in unhealthy foods and deforestation resulted in global warming. No safety standard followed by the Mexican truck transport.

Burka [1]3 years ago
4 0

Answer:

The North American Free Trade Agreement had various positive and negative effects. For example, the NAFTA had a positive impact in that it lifted trade barriers between the US, Mexico, and Canada and encouraged economic growth in each country. Additionally, the introduction of this agreement eliminated tariffs for the countries involved. However, an issue with the NAFTA was the harm it imposed on farmers. It subsidized their products, making it difficult for small farmers to make profit. Overall, the NAFTA was influential in expanding the opportunities for economic growth in the US, Mexico, and Canada.

Explanation:

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