Author Question: Why is NAFTA controversial? Briefly describe both sides of this controversy. What will be an ... (Read 102 times)

Jkov05 · **on:** Jun 30, 2018

Why is NAFTA controversial? Briefly describe both sides of this controversy.

What will be an ideal response?

Question 2

Why are trade agreements between the U.S. and Mexico more controversial than trade agreements between the U.S. and Canada?

What will be an ideal response?

TheNamesImani · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

Opponents of the agreement argue that increased trade with low-wage countries such as Mexico threatens American jobs, particularly in the manufacturing sector, where Mexican factories have a comparative advantage. American jobs are lost every time U.S. factories decide to relocate in Mexico. On the other hand, those in favor of the agreement generally make reference to the advantages of trade, such as lower costs of final goods to consumers, and the expansion of markets to sell American products.

Answer to Question 2

The difference in levels of economic development is greater which leads to larger political and social tensions.