A) 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)
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.
Changes in consumer food preferences from corn toward wheat reduced demand.
Manufacturing jobs that processed the corn left Mexico for the U.S. due to lower wages, reducing
the need for Mexican-grown corn.
pick one
The correct answer is: Quotas limit the goods that can be imported, which ensures less competition for local producers.
Quotas protect local producers by placing limits on the quantity of goods that can be imported from foreign countries. By restricting the amount of imported goods, quotas ensure that there is less competition for local producers. This allows them to have a larger share of the market and protects them from being undercut by cheaper foreign products. As a result, local producers are able to maintain higher prices and secure their market share, which safeguards their businesses and supports their livelihoods.
The impact of NAFTA on Mexican corn farmers was significant, leading to the loss of livelihoods for many. The main reason for this was the influx of subsidized U.S. corn into the Mexican market, making it difficult for Mexican farmers to compete.
Under NAFTA, the Mexican government provided subsidies to corn farmers in order to increase production. However, the increased production resulted in a surplus of corn in the market, driving down prices. Additionally, U.S. corn, which was heavily subsidized by the American government, flooded the Mexican market.
Mexican corn farmers were unable to compete with the cheap, subsidized U.S. corn. They faced difficulties selling their corn at profitable prices and often had to sell it below production costs. This resulted in a decrease in their income and made it financially unsustainable for many to continue farming corn.
Furthermore, changes in consumer food preferences also contributed to the struggles faced by Mexican corn farmers. Mexican consumers began shifting their preferences towards wheat and other crops, reducing the demand for corn. This further added to the challenges faced by corn farmers, as they struggled to find buyers for their produce.
Another factor that affected Mexican corn farmers was the movement of manufacturing jobs. Due to lower wages in the United States, many companies that processed corn moved their operations there, reducing the need for Mexican-grown corn. This further decreased the demand for Mexican corn and added to the financial difficulties faced by farmers.
In summary, NAFTA had a negative impact on Mexican corn farmers. The subsidies provided by the Mexican government to increase production, coupled with the influx of subsidized U.S. corn, flooded the market and made it difficult for Mexican farmers to compete. Changes in consumer food preferences and the movement of manufacturing jobs also contributed to the loss of livelihoods for many Mexican corn farmers.
A) How do quotas protect local producers? (1 point)
Quotas increase competition among different countries, which lowers prices of goods.
Quotas limit the goods that can be imported, which ensures less competition for local producers.
Quotas help organize workers to advocate for increased protections.
Quotas add a fee to the price of imported goods, so they are less competitive than local
products.