Studies of NAFTA have concluded that from 1994 to 2003, free trade caused ______________in the productivity of Mexican maquiladora firms producing for export than for Mexican firms mainly producing for the Mexican domestic market.
A) larger increases
B) smaller increases
C) identical increases
D) no change

Question

Quizplus · Accepted Answer

Studies have shown that free trade under NAFTA led to larger increases in the productivity of Mexican maquiladora firms producing for export compared to Mexican firms mainly producing for the domestic market. This is because maquiladora firms were able to take advantage of foreign investment and technology transfer, leading to improvements in productivity.

Studies of NAFTA Have Concluded That from 1994 to 2003