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Fact 7.3.1
Before 1995,trade between Canada and Mexico was subject to tariffs.In 1995,Mexico joined NAFTA and all Canadian and Mexican tariffs have gradually been removed.
-Refer to Fact 7.3.1.With the removal of the tariffs,the quantity of Canadian imports from Mexico ________,and the quantity of Canadian exports to Mexico ________.
A)increases;decreases
B)decreases;decreases
C)decreases;increases
D)increases;does not change
E)increases;increases

Question

Quizplus · Accepted Answer

With the removal of tariffs, it becomes easier and more cost-effective for both countries to trade with each other. This leads to an increase in the quantity of Canadian imports from Mexico and an increase in the quantity of Canadian exports to Mexico. Therefore, the best choice is E.

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