Analyze the impact of NAFTA on Mexican corn farmers. Why
did so many Mexican corn farmers lose their livelihoods as a
consequence of NAFTA? (1 point)
Mexican farmers could not compete with governmentsubsidized U.S. corn.
Manufacturing jobs that processed the corn left Mexico for
the U.S. due to lower wages, reducing the need for
Mexican-grown corn.
Changes in consumer food preferences from corn toward
wheat reduced demand.
NAFTA gave subsidies to Mexican corn farmers to
increase production, which flooded the market.
The correct answer is: Mexican farmers could not compete with government-subsidized U.S. corn.
NAFTA allowed for the free trade of agricultural products between Mexico and the United States. This meant that Mexican corn farmers were suddenly faced with competition from heavily subsidized U.S. corn, which lowered its price and made it difficult for Mexican farmers to sell their corn at a competitive price. The subsidized U.S. corn flooded the Mexican market, leading to a decrease in demand for Mexican-grown corn and causing many farmers to lose their livelihoods.
The other options provided (manufacturing jobs leaving Mexico, changes in consumer food preferences, and subsidies to increase production) may have had some impact on Mexican corn farmers, but the primary reason for their loss of livelihoods was the inability to compete with subsidized U.S. corn.
The impact of NAFTA on Mexican corn farmers was significant, and many of them lost their livelihoods as a consequence. One of the main reasons for this was that Mexican farmers couldn't compete with the government-subsidized corn from the United States. The U.S. government provided subsidies to its corn farmers, which lowered the cost of production and made it difficult for Mexican farmers to sell their corn at competitive prices.
Additionally, there was a shift in manufacturing jobs that processed corn from Mexico to the United States. This happened because of lower wages in the U.S., which reduced the need for Mexican-grown corn. As a result, the demand for Mexican corn decreased, leading to fewer opportunities for Mexican farmers to sell their crops.
Moreover, there were changes in consumer food preferences from corn to wheat. This shift in preferences reduced the demand for corn, further impacting Mexican corn farmers who relied on selling their produce.
Interestingly, in response to the challenges faced by Mexican corn farmers, NAFTA gave subsidies to these farmers to increase their production. However, this led to an oversupply of corn in the market, thereby flooding it. As a result, the increased supply and reduced demand further contributed to the decline in corn prices and made it even more challenging for Mexican farmers to make a profitable living.
Overall, it was the combination of factors such as competition from government-subsidized U.S. corn, the loss of processing jobs to the United States, a shift in consumer preferences, and the unintended consequences of subsidies that led to the decline and loss of livelihoods for many Mexican corn farmers under NAFTA.
The impact of NAFTA on Mexican corn farmers was significant, leading to the loss of livelihoods for many. This can be attributed to several factors.
Firstly, Mexican farmers found it difficult to compete with the U.S. corn industry, which was heavily subsidized by the government. These subsidies allowed U.S. farmers to produce corn at a lower cost, making it more affordable and attractive to consumers. As a result, the demand for Mexican-grown corn decreased, causing a decline in sales and profits for Mexican farmers.
Additionally, the implementation of NAFTA led to a shift in manufacturing jobs from Mexico to the U.S. due to lower wages. As these manufacturing jobs, particularly those involved in corn processing, relocated to the U.S., the demand for Mexican-grown corn also decreased. This further contributed to the loss of livelihoods for Mexican corn farmers.
Moreover, changes in consumer food preferences played a role in reducing the demand for Mexican corn. There was a shift in preferences from corn towards wheat, which resulted in a decrease in the consumption of corn products. This trend significantly impacted the Mexican corn industry, leading to a decrease in demand and subsequently, the loss of jobs for corn farmers.
Lastly, NAFTA itself played a part in the decline of Mexican corn farmers' livelihoods. In an attempt to increase corn production and compete with subsidized U.S. corn, the Mexican government provided subsidies to Mexican corn farmers. However, this led to an oversupply of corn in the market, causing prices to plummet. The flooded market further contributed to the financial struggles of Mexican corn farmers, leading to the loss of their livelihoods.
In summary, the impact of NAFTA on Mexican corn farmers was negative, with many losing their livelihoods as a consequence. The inability to compete with subsidized U.S. corn, the relocation of corn processing jobs to the U.S., changes in consumer food preferences, and the oversupply of corn due to government subsidies all contributed to the decline in the Mexican corn industry.