Globalisation Example - NAFTA

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  • Created by: LewWills
  • Created on: 15-04-17 14:55

1. Which of the following is true about NAFTA

  • It seeks political union of North America.
  • It is a free trade only bloc.
  • It is free trade and movement of people.
  • It seeks political union and free trade.
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2. Underline a positive impact of NAFTA on Mexico.

  • Mexico now has reduced or no tariffs with 60% of the world.
  • Mexico is now trade dependent.
  • Farmers no longer are protected by tariffs or price match guarantees.
  • Production in Mexico is now unable to compete with large scale US manufacturers.

3. Underline a positive impact of NAFTA on Canada.

  • Spatial division of labor by Canadian companies.
  • Increased trade may damage the environment.
  • Trade with the USA and Mexico has at least doubled since the deal.
  • Canada may become increasingly reliant on NAFTA.

4. Underline a positive impact of NAFTA on the USA.

  • TNC's have moved to Mexico to get higher profits.
  • The USA does not have to pay tariffs on exports to Mexico.
  • The US gains a better quality of imports.
  • Results in wages lowered by US businesses, if they are to compete with Mexico.

5. When was NAFTA established?

  • 1994
  • 1989
  • 1993
  • 1996

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