Advocates of NAFTA acknowledge that some U.S.and Canadian firms would move production to Mexico to take advantage of lower labor costs.How is U.S.and Canada seen to gain from this trend?
A) Low-skilled jobs will be moved out to Mexico resulting in lowering of average wage rates in U.S.and CanadA.
B) Increased imports from Mexico will help reduce the huge trade deficit for U.S.and Canada.
C) Increased incomes of the Mexicans would allow them to import more U.S.and Canadian goods,thereby increasing demand.
D) A large number of Mexican firms will outsource low-skilled workers from the U.S.
Correct Answer:
Verified
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