Which of the following was an observable effect of the North American Free Trade Agreement (NAFTA)?
A. Imports of clothing and textiles into the member countries were diverted away from low-cost suppliers in Asia.
B. NAFTA led to a substantial decrease in the volume of trade among the three member countries.
C. There was massive shift of jobs toward Mexico.
D. Low-cost firms in Canadian manufacturing industries were replaced by the high-cost firms.
Answer: A
You might also like to view...
On August 15, 1971, the United States
A) returned to the gold standard. B) suspended the convertibility of dollars into gold. C) provided unlimited dollar reserves to the German central bank to help end a speculative attack on the mark. D) provided unlimited dollar reserves to the Bank of England to help end a speculative attack on the pound.
Both monopolistic competition and oligopoly are market structures
a. that fail to achieve the total surplus achieved by perfect competition. b. that feature only a few firms in each market. c. to which the concept of Nash equilibrium is frequently applied by economists. d. in which firms earn zero economic profit in the long run.