Since NAFTA was signed, Mexico saw the productivity of its
Firms:
A)decrease in the nonmaquiladora plants.
B)decrease in the maquiladora plants.
C)increase in the maquiladora plants at a faster pace than in the nonmaquiladora plants.
D)increase in the maquiladora plants at a slower pace than in the nonmaquiladora plants.

Question

Quizplus · Accepted Answer

NAFTA led to an increase in the productivity of maquiladora plants in Mexico at a faster pace than in nonmaquiladora plants. This is because maquiladora plants were able to take advantage of the tariff-free access to US markets and benefited from foreign direct investment and improved technology transfer. Nonmaquiladora plants, on the other hand, faced increased competition from US imports and struggled to compete with the more technologically advanced maquiladora sector.

Since NAFTA Was Signed, Mexico Saw the Productivity of Its