Free trade has led to more manufacturing jobs in Mexico because it?
Drives up the cost of agricultural goods.
Makes it cheaper to export good to the united states. (MY ANSWER)
Encourage tourism between the two countries
Makes American good less expensive.
Right.
Your answer, "Makes it cheaper to export goods to the United States," is correct. Free trade has opened up opportunities for Mexico to export goods to the United States at a lower cost. Let me explain further:
Free trade refers to the removal or reduction of trade barriers between countries, such as tariffs or quotas. In the case of Mexico, when barriers to trade are removed with the United States, it becomes easier and cheaper for Mexican manufacturers to export their goods to the American market.
With lower trade barriers, Mexican manufacturers benefit from increased access to the large consumer base in the United States. As a result, they can sell their products to U.S. consumers at a competitive price. This increased export potential leads to more manufacturing jobs in Mexico.
Furthermore, the lower cost of exporting goods to the United States allows Mexican manufacturers to expand their operations to meet the demand. This expansion creates more job opportunities in the manufacturing sector.
On the other hand, it is important to note that free trade can have mixed effects on other sectors of the economy, such as agriculture. While lower trade barriers can benefit manufacturers, they may also expose farmers to more global competition, potentially affecting the cost and demand for agricultural goods. Hence, your other options regarding the cost of agricultural goods or the impact on American goods are not accurate in this context.
Overall, free trade facilitates the growth of manufacturing jobs in Mexico by making it cheaper and easier to export goods to the United States.