According to the textbook, one likely short-term effect of NAFTA will be that many U.S.and Canadian firms will move some production to Mexico to take advantage of
A)cheaper transportation costs.
B)lower interest rates.
C)lower labour costs.
D)a higher skilled labour force.
E)the Mexican market

Question

Quizplus · Accepted Answer

NAFTA eliminated most tariffs on goods traded between the U.S., Canada, and Mexico, making it cheaper for U.S. and Canadian firms to move some of their production to Mexico where labor costs are significantly lower.

According to the Textbook, One Likely Short-Term Effect of NAFTA