Which of the following was NOT a reason for Canada to join NAFTA?
A) Canadian firms could expand their markets by selling to the United States and Mexico.
B) Canadian firms could enjoy lower average costs by producing more.
C) Canada did not want U.S. products to dominate its domestic market.
D) Canada would experience an increase in income and employment by joining NAFTA.

Question

Quizplus · Accepted Answer

Canada joining NAFTA was mainly motivated by the perceived economic benefits such as expanding markets and increasing income and employment. Lowering average costs by producing more was also seen as a potential advantage. However, there is no evidence that Canada was concerned about U.S. products dominating its domestic market, and this is not considered a reason for joining NAFTA.

Which of the Following Was NOT a Reason for Canada