20
QuizMultiple Choice

The Modern Global Economy — Unit test

Question 20 • Contemporary Issues

Which statement reflects an outcome of the North American Free Trade Agreement?

Answer
A
Corporations limit the outsourcing of labor.
B
Imports and exports are taxed at a higher price.
C
Goods flow across the borders with fewer taxes.
D
Resources are exchanged at a drastically lower rate.

Explanation

The North American Free Trade Agreement (NAFTA) reduced or eliminated many tariffs among the United States, Canada, and Mexico. With fewer taxes on goods crossing borders, trade among the three countries became easier. Therefore, the outcome is that goods flow across borders with fewer taxes.

AI-written and checked against the verified answer.

Previous
Next