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) Responses Manufacturing jobs that processed the corn left Mexico for the U.S. due to lower wages, reducing the need for Mexican-grown corn. Manufacturing jobs that processed the corn left Mexico for the U.S. due to lower wages, reducing the need for Mexican-grown corn. NAFTA gave subsidies to Mexican corn farmers to increase production, which flooded the market. NAFTA gave subsidies to Mexican corn farmers to increase production, which flooded the market. Mexican farmers could not compete with government-subsidized U.S. corn. Mexican farmers could not compete with government-subsidized U.S. corn. Changes in consumer food preferences from corn toward wheat reduced demand.
The impact of NAFTA on Mexican corn farmers was significant, and many of them lost their livelihoods as a consequence. This can be attributed to various factors:
1. Manufacturing jobs that processed the corn left Mexico for the U.S. due to lower wages, reducing the need for Mexican-grown corn. With the implementation of NAFTA, American companies found it more cost-effective to shift their corn processing operations to Mexico, where labor costs were significantly lower. This resulted in a decreased demand for Mexican-grown corn, leading to a decline in prices and profitability for Mexican farmers.
2. NAFTA gave subsidies to Mexican corn farmers to increase production, which flooded the market. In an attempt to promote agricultural growth in Mexico, NAFTA provided subsidies to Mexican corn farmers, encouraging increased production and exports. However, this led to an oversupply of corn in the market, causing prices to plummet further.
3. Mexican farmers could not compete with government-subsidized U.S. corn. While Mexican corn farmers received subsidies under NAFTA, they could not compete with the heavily subsidized U.S. corn industry. The United States provided substantial financial support to its corn farmers, allowing them to produce corn at a much lower cost compared to their Mexican counterparts. This level of competition placed Mexican farmers at a disadvantage and undermined their ability to make a profit.
4. Changes in consumer food preferences from corn towards wheat reduced demand. In addition to economic factors, changes in consumer food preferences also affected Mexican corn farmers. As a consequence of economic growth and changing dietary preferences, there was a shift in demand from corn-based products towards wheat-based products. This change further reduced the demand for Mexican-grown corn, leaving farmers with fewer buyers for their produce.
Overall, the combined effect of manufacturing jobs leaving Mexico, subsidies leading to oversupply, competition with U.S. corn, and changes in consumer preferences all contributed to the loss of livelihoods for many Mexican corn farmers as a consequence of NAFTA.
To analyze the impact of NAFTA on Mexican corn farmers and understand why many of them lost their livelihoods, we need to consider several factors. Here's the breakdown:
1. Manufacturing jobs that processed the corn left Mexico for the U.S. due to lower wages, reducing the need for Mexican-grown corn:
The implementation of NAFTA led to the relocation of some manufacturing jobs from Mexico to the United States. This move was driven by lower wages and production costs in the U.S., which made it more economical for companies to process corn there. As a result, the demand for Mexican-grown corn diminished since it was no longer needed for processing in Mexico.
2. NAFTA gave subsidies to Mexican corn farmers to increase production, which flooded the market:
Under NAFTA, the Mexican government provided subsidies to corn farmers to encourage increased production. However, this boost in production caused an oversupply of corn in the market, resulting in a surplus. The flooding of the market with excess corn led to a decrease in its market value and profitability for Mexican corn farmers.
3. Mexican farmers could not compete with government-subsidized U.S. corn:
Alongside subsidies given to Mexican corn farmers, the U.S. government also provided significant subsidies to their own corn farmers. These subsidies made U.S.-grown corn much cheaper and more competitive in the international market. As a consequence, Mexican corn farmers struggled to compete with the lower-priced U.S. corn, which further impacted their livelihoods.
4. Changes in consumer food preferences from corn toward wheat reduced demand:
Another factor influencing the situation was the shift in consumer food preferences from corn to wheat. As the demand for wheat increased, the demand for corn decreased. This change in consumer preferences further reduced the market for Mexican corn and negatively affected corn farmers who relied on its sale for their livelihoods.
In summary, the loss of manufacturing jobs, government subsidies leading to overproduction, inability to compete with U.S.-subsidized corn, and changes in consumer food preferences collectively contributed to a decline in demand and profitability for Mexican corn farmers under NAFTA.
The impact of NAFTA on Mexican corn farmers was significant, leading to many of them losing their livelihoods. There are multiple reasons for this consequence:
1. Manufacturing jobs that processed Mexican-grown corn moved to the United States due to lower wages. As a result, there was a reduced need for Mexican corn, leading to a decline in demand.
2. NAFTA provided subsidies to Mexican corn farmers to increase production. However, this increased production flooded the market, resulting in an oversupply of corn. The surplus supply led to a decrease in corn prices, making it difficult for Mexican farmers to compete.
3. Mexican corn farmers struggled to compete with government-subsidized U.S. corn. The United States heavily subsidizes its corn industry, making their corn more affordable compared to Mexican corn.
4. Changes in consumer food preferences also played a role. There was a shift in consumer food preferences from corn to wheat, further reducing the demand for Mexican-grown corn.
Overall, the combination of manufacturing jobs moving to the United States, oversupply due to subsidies, intense competition from U.S. corn, and changes in consumer preferences contributed to the loss of livelihoods for many Mexican corn farmers as a consequence of NAFTA.