Question

Use the following terms to explain how Mexico’s economy has benefitted from NAFTA: import tariffs, Wranglers, beer, Michoacan

Answer 1

NAFTA has been the free trade agreement between USA, Canada and Mexico. It has helped Mexico economy to revive and get many benefits. NAFTA, the trade became free of import tariff and it helped Mexican producers to export their cheap agricultural products to the countries of USA and Canada. For example, Michoacan has been the state as largest producer of Avocado. So, Avocado, along-with the tomatoes has been exported in huge quantities to these countries. Further, many MNC firms came to Mexico and started production. These producers also imported the necessary ingredients from the USA and produced Mexican Beer and exported to these nations as well as to the rest of the world. In another example, producers of Wranglers jeans, established in their production house in Mexico in 2001. From Mexico, these products were exported to other neighboring countries. Job creation also took place. It made the economy of Mexico to revive and grow. All these benefits took place due to NAFTA.