Question

Mexico: strongest Latin American economy, very strong maquiladora industry, Trade with both Europe and Asia has increased, Now competitive with Asia for the US market. More than 90% of Mecisoc's trade occurs under free trade agreements. Maquiladeras allow imports and exports of materials and equipment without taxes. They have this agreement with the US and now EU. a) Free trade agreements

b) Bilateral agreements
c) Tariff agreements
d) Investment agreements

Answer 1

Mexico's strong economy in Latin America is greatly influenced by NAFTA and the maquiladora industry, enabling competitive trade with the US market and increased international trade under free trade agreements. So, the correct answer is a) Free trade agreements.

Step-by-step explanation:

The rise of Mexico as a strong economy in Latin America is significantly attributed to the North American Free Trade Agreement (NAFTA) and the establishment of maquiladoras.

NAFTA, which includes Canada, the United States, and Mexico, has eliminated or reduced tariffs, leading to the creation of a large trading bloc and bolstering trade relationships.

Maquiladoras are factories mostly owned by US corporations that use cheap local labor to manufacture goods for export, predominantly back to the United States, without the burden of taxes on imports and exports thanks to trade agreements like NAFTA.

Through the increased foreign ownership engendered by NAFTA and the strategic use of maquiladoras, Mexico has become competitive with Asia for the US market.

The country's shift from a strategy of import substitution to a more free-trade-oriented policy has also seen trade with both Europe and Asia increase.

Over 90% of Mexico's trade occurs under free trade agreements, highlighting the nation’s commitment to global economic integration.

So, the correct answer is a) Free trade agreements.