Which statement below is not an economic impact of the North American Free Trade Agreement?
(1 point)
Responses
Elimination of tariffs between member nations reduces the cost of goods.
Elimination of tariffs between member nations reduces the cost of goods.
The largest market for Canada's agricultural exports is the United States.
The largest market for Canada's agricultural exports is the United States.
Economic collaboration through intercontinental trade has created a bloc among North American countries.
Economic collaboration through intercontinental trade has created a bloc among North American countries.
Mexican businesses have relocated to the United States where labor costs are lower.
Mexican businesses have relocated to the United States where labor costs are lower.
The statement that is not an economic impact of the North American Free Trade Agreement is: "Mexican businesses have relocated to the United States where labor costs are lower."
To determine the statement that is not an economic impact of the North American Free Trade Agreement (NAFTA), we need to analyze each statement and identify which one does not directly relate to the agreement.
1. "Elimination of tariffs between member nations reduces the cost of goods."
This statement is true. One of the key features of NAFTA is the elimination of tariffs on goods traded between Canada, the United States, and Mexico. This has resulted in a reduction in the cost of goods, making them more affordable for consumers.
2. "The largest market for Canada's agricultural exports is the United States."
This statement is true and directly related to NAFTA's economic impact. The removal of barriers to trade under NAFTA has allowed Canada to increase its agricultural exports, with the United States being their largest market.
3. "Economic collaboration through intercontinental trade has created a bloc among North American countries."
This statement is also true and reflects one of the economic impacts of NAFTA. The agreement has promoted economic collaboration and integration among Canada, the United States, and Mexico. It has created a bloc where these countries work together to enhance their economic growth and competitiveness.
4. "Mexican businesses have relocated to the United States where labor costs are lower."
This statement is not a direct economic impact of NAFTA. While it is related to trade between Mexico and the United States, it does not specifically address the effects of NAFTA. The relocation of businesses due to lower labor costs might be influenced by various factors, including labor market dynamics and industry-specific considerations, rather than solely being a consequence of NAFTA.
Therefore, the statement that is not an economic impact of NAFTA is "Mexican businesses have relocated to the United States where labor costs are lower."