Question

Considering the goals of NAFTA, evaluate whether the outcomes listed below are positive or negative for businesses in the U.S.

Outsourcing of jobs [Positive,Negative]

Cheaper goods [Positive,Negative]

Cheap labor [Positive,Negative]

Answer 1

Outsourcing of jobs: Positive

Cheaper goods: Negative

Cheap labor: Positive

Answer 2

Cheaper goods have a negative impact in businesses because they flood the market impacting on the profitability of locally produced goods.
Cheaper labor has a positive impact as it makes labor cheaper for American businesses making it possible for the companies to decrease their variable costs.outsourcing of jobs also has a positive effect on the businesses,as it makes labor cheaper, as it removes labor obligations from the American businesses to the outsourcing companies.