Question

Which of the following does the North American Free Trade Agreement NOT do?

a. expand trade by requiring equal treatment of U.S. firms by Canada and Mexico
b. provide protection for intellectual property
c. raise tariffs on products imported from Canada and Mexico
d. simplify country-of-origin rules
e. make it easier to invest in Mexico and Canada

Answer 1

NAFTA does not raise tariffs but instead eliminates trade barriers to facilitate easier trade and investment among the United States, Canada, and Mexico, contributing to economic growth and corporate investment.

Step-by-step explanation:

The North American Free Trade Agreement (NAFTA) does not raise tariffs on products imported from Canada and Mexico. Instead, it is designed to eliminate trade barriers such as tariffs, making it easier to trade and invest between the three countries involved - the United States, Canada, and Mexico.

Initiated in 1994, NAFTA aims to stimulate economic growth by encouraging foreign investment and creating a larger market. Globalization efforts through such trade agreements can have complex impacts on job opportunities, wages, and economic conditions within the member countries.

Investment opportunities are one of the significant benefits of NAFTA, as it allows for more corporate participation and foreign ownership of businesses, thus facilitating easier investment in industries across the borders of the member nations.