Question

Which statement describes a negative impact of NAFTA?

A. Tariffs increase.

B. The price of goods rises.

C. Small businesses find it harder to compete.

D. Trade increases between member countries.

Answer 1

A. Tariffs increase.

Step-by-step explanation:

This is due to the asymmetric nature of tariffs - their significantly higher level for imports compared with the country's exports and a significant excess of non-tariff, especially border, barriers in comparison with tariff barriers, which weakens the effect of tariff liberalization.