Which of the following would most likely result if Mercosur expanded to include Chile?
A. Trade between Chile and Uruguay would decline.
B. Trade between Chile and the United States would increase.
C. Trade between Chile and Argentina would increase.
D. Trade between Chile and the United States would decline.
C. Trade between Chile and Argentina would increase.
C. Trade between Chile and Argentina would increase.
Mercosur is a regional trade bloc in South America that includes countries like Argentina, Brazil, Paraguay, and Uruguay. If Mercosur were to expand to include Chile, it would mean that Chile would become a member of this trade bloc. As a member, Chile would benefit from reduced trade barriers and increased market access within the bloc. One of the main objectives of Mercosur is to promote regional integration and increase trade among member countries. Therefore, it is most likely that trade between Chile and Argentina, as fellow Mercosur members, would increase.
To determine the answer to this question, we need to understand the concept of Mercosur and its potential impact on trade between countries. Mercosur, also known as the Southern Common Market, is a South American trade bloc that aims to promote trade and economic cooperation among member countries.
If Mercosur were to expand to include Chile, we can expect that trade between Chile and other Mercosur member countries would likely increase. The objective of Mercosur is to reduce trade barriers and promote economic integration within the region. Therefore, it is reasonable to assume that Chile's inclusion in Mercosur would lead to an increase in trade between Chile and other member countries.
Based on this understanding, the most likely result if Mercosur expanded to include Chile would be:
C. Trade between Chile and Argentina would increase.
As for the other options:
A. Trade between Chile and Uruguay would decline: Since Mercosur's expansion would aim to increase trade within the bloc, it is unlikely that trade between Chile and any member country, including Uruguay, would decline as a result.
B. Trade between Chile and the United States would increase: The question specifically asks about the impact of Mercosur expansion on trade, so it is not directly related to trade between Chile and the United States. Therefore, it is not the most likely outcome.
D. Trade between Chile and the United States would decline: Again, the question is about the impact of Mercosur expansion, not the impact on trade between Chile and the United States. Hence, this is not the most likely outcome.
It is important to note that this analysis is based on the assumption that the goal of Mercosur is achieved by reducing trade barriers and promoting economic integration among member countries. The actual impact may be influenced by various other factors and specific trade agreements between the countries involved.