Question

2) The North American Free Trade Agreement (NAFTA), signed in 1994, reduced trade barriers between the United States, Canada, and Mexico. During the 2016 presidential campaign, several prominent candidates from both parties denounced NAFTA as having had a negative impact on jobs in the United States. In particular, they cited the impact on manufacturing jobs. a. In what ways might free trade agreements have a negative impact on jobs in the U.S.? Briefly explain. Is it possible that free trade agreements could have a positive impact on jobs in the U.S.? Briefly explain. (2 points)

Answer 1

__(@) free trade agreements? negative impact on US Jobs It happened because Mexico labor was a аh gucluable tiлirulos, US мама лла indushes shifted from high cost us labor ! to low cost Mexico labor.. 610, 6, 82,900 holes of USA went Mexica I lome companies chose Mexico labor while ethere started supressing us labor to work on thur terms and weage. This led to suppression in wage growth Although in manufachweing sector NAFTA didn't do well with USA but en other sectora Pt did well. - NAFTA boosted us economic growth profito , jobs. Tus lorem expoun were increased to sky- Houching levels creating 20 million lobs in USA in agriculttral export. So, yes, it is possible that FTA could I have had a lot more positive impact on us jobs. .

(b) This lucome trequality gap started in lonos. I us workers having limilar skills to that of cheap laboer in developing Counter gave incentive to compoules to get their work outsourced ( emplaying cheap labor) - which led to recluction en Tob opportunities and poor class in Lus became more poor but if only International trade is to be blamed - thes Us companies (local) should have hered those unskilled us labou. But the major cause of inequality in recome Luas technological changes which led to companies whift from unskilled to skilled labor a dominant factor Creating inequality in income
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