Question

How did joining NAFTA affect the Mexican economy? It had little effect on the economy. It caused the economy to decline. It stopped all economic downturns. It helped improve the economy.

Answer 1

Explanation:

The North American Free Trade Agreement of 1994's effects on Mexico have long been overshadowed by the debate on the Agreement's effects on the economy of the United States. As a kind partner in the agreement, the effects that NAFTA has had on the Mexican economy is essential to understanding NAFTA on a whole. A key factor in this discussion is the way the Agreement was presented to Mexico; namely, that it would increase development of the Mexican economy by providing more middle class jobs that would enable more Mexicans to lift themselves out of the lower classes. Thus, wages, employment, attitudes, and migration all present essential areas of analyses to understand effects NAFTA has had on the Mexican economy. The overall economic effects of NAFTA on the Mexican economy have been mild in light of the promises made about the deal when it was being negotiated. Economic growth has been steady at around two percent, but that growth is far from the growth the deal was supposed to bring. NAFTA has had a mild effect on employment, and wages have largely remained static over the years that NAFTA has been in place. Finally, Mexicans overall have a critical view towards the trade deal, but are generally opposed to a complete repeal of the law.

Answer 2

Joining NAFTA helped improve the economy of Mexico.

Did NAFTA help the Mexican economy?

• Unfamiliar speculation expanded significantly following the entry of NAFTA, with billions of dollars yearly being put resources into Mexico.
• This unfamiliar speculation appeared in an expansion in assembling as a portion of Mexican products, with commodities to the United States expanding to 88.66 per cent of Mexican products.
• NAFTA without doubt fundamentally affected the macroeconomic climate confronting Mexico, given the decrease in exchange obstructions and expanded market access that the understanding gave Mexico.

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