Which of the Following Is a Consequence of the Implementation

question 20

Multiple Choice

Which of the following is a 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 U.S. 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 less 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.

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