What was the significance of NAFTA?

a. It allowed freer trade opportunities for the United States, Canada, and Mexico.

b. It encouraged trade with North Korea, which had previously been embargoed.

c. It forbade trade with any country that didn't use a capitalist government.

d. It restricted trade within North American countries by imposing a heavy tax and tariffs

Question

Kyan

Business

14 April, 23:50

What was the significance of NAFTA?

a. It allowed freer trade opportunities for the United States, Canada, and Mexico.

b. It encouraged trade with North Korea, which had previously been embargoed.

c. It forbade trade with any country that didn't use a capitalist government.

d. It restricted trade within North American countries by imposing a heavy tax and tariffs

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Answers (1)

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Giovanna Castillo · Answer 1

a. It allowed freer trade opportunities for the United States, Canada, and Mexico.

Explanation:

NAFTA is North American Free Trade Agreement.

NAFTA is a trade agreement that was formed to encourage increased economic activity among the three countries in North America. The deal came into force on January 01, 1994. It involved the countries of Canada, Mexico and the United States of America.

The formation of NAFTA created the second-largest free trade area in the world in geographic coverage. Its purpose is to encourage trade corporation in the region. To achieve that, NAFTA proposed a reduction or elimination of tariffs, particularly those related to the automobile, agriculture and textile industries. The tariffs were gradually phased out between Jan 1. 1994 and Jan 1. 2008