An Expected Consequence of the Implementation of the North American

question 115

Multiple Choice

An expected consequence of the implementation of the North American Free Trade Agreement was

• A) low-skilled jobs would be moved out to Mexico resulting in lowering of average wage rates in the United States and Canada.
• B) increased imports from Mexico would 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 would 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.

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