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The North American Free Trade Agreement (NAFTA): A Case Study

Description: The North American Free Trade Agreement (NAFTA) was a trilateral trade agreement between Canada, Mexico, and the United States. It was signed on December 17, 1992, and entered into force on January 1, 1994. NAFTA created a free trade area among the three countries, eliminating most tariffs and other trade barriers. This quiz will test your knowledge of NAFTA.
Number of Questions: 15
Created by:
Tags: nafta free trade economics
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What was the primary goal of NAFTA?

  1. To create a free trade area among Canada, Mexico, and the United States

  2. To promote economic growth in the three countries

  3. To reduce trade barriers between the three countries

  4. All of the above

Show answer
Correct Option: D
Explanation:

NAFTA was designed to achieve all of these goals.

Which countries were part of NAFTA?

  1. Canada, Mexico, and the United States

  2. Canada, Mexico, and the United Kingdom

  3. Canada, Mexico, and Japan

  4. Canada, Mexico, and China

Show answer
Correct Option: A
Explanation:

NAFTA was a trilateral trade agreement between Canada, Mexico, and the United States.

When did NAFTA enter into force?

  1. January 1, 1994

  2. January 1, 1995

  3. January 1, 1996

  4. January 1, 1997

Show answer
Correct Option: A
Explanation:

NAFTA entered into force on January 1, 1994.

What was the impact of NAFTA on trade between the three countries?

  1. It increased trade between the three countries

  2. It decreased trade between the three countries

  3. It had no impact on trade between the three countries

  4. It is unclear what the impact of NAFTA was on trade between the three countries

Show answer
Correct Option: A
Explanation:

NAFTA led to a significant increase in trade between Canada, Mexico, and the United States.

What was the impact of NAFTA on economic growth in the three countries?

  1. It increased economic growth in all three countries

  2. It decreased economic growth in all three countries

  3. It had no impact on economic growth in any of the three countries

  4. It is unclear what the impact of NAFTA was on economic growth in the three countries

Show answer
Correct Option: A
Explanation:

NAFTA led to increased economic growth in Canada, Mexico, and the United States.

What was the impact of NAFTA on jobs in the three countries?

  1. It created jobs in all three countries

  2. It destroyed jobs in all three countries

  3. It had no impact on jobs in any of the three countries

  4. It is unclear what the impact of NAFTA was on jobs in the three countries

Show answer
Correct Option: A
Explanation:

NAFTA led to the creation of jobs in Canada, Mexico, and the United States.

What was the impact of NAFTA on the environment?

  1. It had a positive impact on the environment

  2. It had a negative impact on the environment

  3. It had no impact on the environment

  4. It is unclear what the impact of NAFTA was on the environment

Show answer
Correct Option:
Explanation:

NAFTA had both positive and negative impacts on the environment.

What was the impact of NAFTA on social welfare in the three countries?

  1. It improved social welfare in all three countries

  2. It worsened social welfare in all three countries

  3. It had no impact on social welfare in any of the three countries

  4. It is unclear what the impact of NAFTA was on social welfare in the three countries

Show answer
Correct Option:
Explanation:

NAFTA had both positive and negative impacts on social welfare.

What was the impact of NAFTA on inequality in the three countries?

  1. It reduced inequality in all three countries

  2. It increased inequality in all three countries

  3. It had no impact on inequality in any of the three countries

  4. It is unclear what the impact of NAFTA was on inequality in the three countries

Show answer
Correct Option:
Explanation:

NAFTA had both positive and negative impacts on inequality.

What was the impact of NAFTA on migration between the three countries?

  1. It increased migration from Mexico to the United States

  2. It decreased migration from Mexico to the United States

  3. It had no impact on migration between the three countries

  4. It is unclear what the impact of NAFTA was on migration between the three countries

Show answer
Correct Option: A
Explanation:

NAFTA led to an increase in migration from Mexico to the United States.

What was the impact of NAFTA on the drug trade between the three countries?

  1. It increased the drug trade between the three countries

  2. It decreased the drug trade between the three countries

  3. It had no impact on the drug trade between the three countries

  4. It is unclear what the impact of NAFTA was on the drug trade between the three countries

Show answer
Correct Option: A
Explanation:

NAFTA led to an increase in the drug trade between Canada, Mexico, and the United States.

What was the impact of NAFTA on organized crime in the three countries?

  1. It increased organized crime in all three countries

  2. It decreased organized crime in all three countries

  3. It had no impact on organized crime in any of the three countries

  4. It is unclear what the impact of NAFTA was on organized crime in the three countries

Show answer
Correct Option: A
Explanation:

NAFTA led to an increase in organized crime in Canada, Mexico, and the United States.

What was the impact of NAFTA on corruption in the three countries?

  1. It increased corruption in all three countries

  2. It decreased corruption in all three countries

  3. It had no impact on corruption in any of the three countries

  4. It is unclear what the impact of NAFTA was on corruption in the three countries

Show answer
Correct Option: A
Explanation:

NAFTA led to an increase in corruption in Canada, Mexico, and the United States.

What was the impact of NAFTA on the rule of law in the three countries?

  1. It strengthened the rule of law in all three countries

  2. It weakened the rule of law in all three countries

  3. It had no impact on the rule of law in any of the three countries

  4. It is unclear what the impact of NAFTA was on the rule of law in the three countries

Show answer
Correct Option: B
Explanation:

NAFTA led to a weakening of the rule of law in Canada, Mexico, and the United States.

What was the impact of NAFTA on democracy in the three countries?

  1. It strengthened democracy in all three countries

  2. It weakened democracy in all three countries

  3. It had no impact on democracy in any of the three countries

  4. It is unclear what the impact of NAFTA was on democracy in the three countries

Show answer
Correct Option: B
Explanation:

NAFTA led to a weakening of democracy in Canada, Mexico, and the United States.

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