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) 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 Changes in consumer food preferences from corn toward wheat reduced demand Mexican farmers could not compete with government-subsidized U.S. corn .
The main reason why so many Mexican corn farmers lost their livelihoods as a consequence of NAFTA is the last option mentioned: Mexican farmers could not compete with government-subsidized U.S. corn.
Through NAFTA, the United States heavily subsidized its corn production, which resulted in a significantly lower cost of production for American farmers. These subsidies allowed U.S. corn to be sold at a lower price than Mexican corn, which made it difficult for Mexican farmers to compete in the market. As a result, many Mexican farmers were forced out of business because they were unable to sell their corn at a price that would cover their production costs.
Additionally, with the implementation of NAFTA, there was increased access to imported corn from the United States. As Mexican tariffs on agricultural products were reduced, U.S. corn flooded the Mexican market, increasing competition for Mexican farmers. This abundance of imported corn further suppressed prices, making it even more difficult for Mexican farmers to make a profit and sustain their livelihoods.
Furthermore, the changing preferences of consumers towards wheat instead of corn also played a role in the decline of Mexican corn farmers. As demand for corn decreased, Mexican farmers faced a reduced market for their produce, exacerbating the challenges they already faced due to competition with subsidized U.S. corn.
In summary, the combined impact of government-subsidized U.S. corn, increased competition, and changes in consumer preferences towards other crops led to the decline of Mexican corn farmers.