Given the Fact That NAFTA Is Now Effective in the U.S

question 18

Multiple Choice

Given the fact that NAFTA is now effective in the U.S., Mexico, and Canada, an American company that has its production plant in Sri Lanka will be willing to relocate its production plant to Mexico mostly because

• A) it will improve the image of its goods.
• B) Mexico has lower wages than Sri Lanka.
• C) it will enable the company to get an entirely western consumer base for its products.
• D) moving finished goods from Mexico to the United States is cheaper and faster than moving them from Sri Lanka.
• E) workers in Mexico are more skilled than those in Sri Lanka.