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.

---

Definitions:

Illumination

Refers to the quality or state of being lit or the process of illuminating a specific area, often used metaphorically to mean clarifying or enlightening an issue or topic.

Keenness of Insight

The ability to see or understand things clearly and deeply, often leading to intuitive judgments.

Fortunate Accident

An unexpected event that leads to a positive outcome or benefit, often playing a valuable role in discoveries and innovations.

Creativity

The ability to generate novel and valuable ideas, solutions, or works that are original and imaginative.