When Ford and General Motors import automobile parts from Mexico at prices below those they must pay in the US:
A)workers who assemble Ford and General Motors vehicles become worse off
B)US consumers, taken as a group, become worse off
C)Mexican consumers, taken as a group, become worse off
D)American companies that manufacture automobile parts become worse off

Question

Quizplus · Accepted Answer

When Ford and General Motors import automobile parts from Mexico at lower prices, it directly impacts American companies that manufacture similar parts, as they face tougher competition and potentially lose business to the cheaper imports. This does not necessarily mean workers assembling vehicles, US consumers, or Mexican consumers become worse off; in fact, lower costs can lead to lower prices or higher margins for the automakers, potentially benefiting consumers and the companies' employees.

When Ford and General Motors Import Automobile Parts from Mexico