Which of the following is an expected consequence of the implementation of the North American Free Trade Agreement?
A)Low-skilled jobs will be moved out to Mexico resulting in lowering of average wage rates in the United States and Canada.
B)Increased imports from Mexico will help reduce the huge trade deficit for United States and Canada.
C)Lower incomes of the Mexicans would allow them to import fewer U.S.and Canadian goods,thereby decreasing demand.
D)A large number of Mexican firms will hire low-skilled workers from the United States.
E)Some U.S.and Canadian firms would move production to Mexico to take advantage of lower labor costs.

Question

Quizplus · Accepted Answer

One of the expected consequences of the implementation of the North American Free Trade Agreement is that some U.S. and Canadian firms would move production to Mexico to take advantage of lower labor costs. This would lead to the relocation of some manufacturing jobs to Mexico, resulting in lower costs for U.S. and Canadian firms, but also to increased competition for low-skilled jobs in the United States and Canada.

Which of the Following Is an Expected Consequence of the Implementation