Final answer:
Trade agreements, like NAFTA replaced by USMCA, aim to ease trade by reducing barriers such as tariffs, enabling goods and services to move more freely between countries like the USA, Canada, and Mexico.
Step-by-step explanation:
For countries involved in a trade agreement, such as the United States, Canada, and Mexico, transactions between these countries are easier because such agreements typically reduce or eliminate trade barriers, like tariffs. These agreements facilitate the flow of goods and services between the member countries.
The North American Free Trade Agreement (NAFTA), replaced by the United States-Mexico-Canada Agreement (USMCA), is a prime example of a regional trade agreement that was intended to allow goods to move more freely among its member countries without the hindrance of tariffs and import laws.
Despite concerns about potential job loss due to competition with low-wage labor markets, agreements like NAFTA and USMCA have been central to expanding trade between the United States, Canada, and Mexico.
Other efforts of globalization may include multilateral alliances like the World Trade Organization (WTO), which aims to promote free trade globally and resolve disputes between countries. Such agreements and organizations work to create smoother and more efficient international trade dynamics.