Question

When NAFTA went into effect in 1994, what was the concern of labor leaders and environmentalists in the United States? A) They believed Mexico would increase their prices to the US to make up for the difference. Eliminate B) The feared that Mexican companies would drive out of business established corporations in the United States. C) They feared the US would lose money by not imposing tariffs therefore leading to an increase in unemployment. D) They believed companies would move to Mexico where wages were lower and enviromental controls were less therefore leading an increase in the US unemployment rate and more pollution.

Answer 1

D) They believed companies would move to Mexico where wages were lower and enviromental controls were less therefore leading an increase in the US unemployment rate and more pollution.

Step-by-step explanation:

The North American Free Trade Agreement, NAFTA, was a treaty involving Canada, Mexico, and the United States, and having Chile as an associate, in a free-trade atmosphere, with reduced costs for the exchange of goods between the three countries.

The former NAFTA came into force in 1992 and lasted until August 27, 2018, with a 15-year term with the customs barriers between the three countries. This regional trade in North America benefited the Mexican economy and helped it to face the competition represented by Japan and the European Union. Many Labor leaders agreed that NAFTA would only turn Canada and Mexico into US "colonies," increasing poverty in Mexico and worsening US unemployment because companies would move to Mexico and offer poor wages. Likewise, many environmental leaders believed that the industrial activity resulting from this agreement would greatly worsen the environmental conditions of these countries.

Answer 2

The answer is D.) They believed companies would move to Mexico where wages were lower and environmental controls were less therefore leading an increase in the US unemployment rate and more pollution.

The North American Free Trade Agreement is a treaty between Canada, Mexico and the United States. That makes NAFTA the world’s largest free trade agreement. By eliminating tariffs, NAFTA increases investment opportunities. The NAFTA agreement is 2,000 pages, with eight sections and 22 chapters.