NAFTA and Central American Free Trade Agreement Quiz

What year was the North American Free Trade Agreement (NAFTA) signed?

• 2010

• 2000

• 1985

• 1994

Which countries were part of the North American Free Trade Agreement (NAFTA)?

• Mexico, Argentina, and the United States

• Canada, Mexico, and Brazil

• Mexico, Brazil, and Argentina

• Canada, Mexico, and the United States

What impact did NAFTA have on small and medium producers in Mexico?

• It increased their access to farm technology

• It accelerated their economic growth

• It dealt a blow to their production due to noncompetitive costs

• It provided them with targeted subsidies

What environmental impact did the influx of cheap US goods have on Mexican farmers?

• It led to a decrease in the use of pesticides and fertilizers

• It resulted in rapid soil degradation and erosion

• It had no impact on the environment

• It improved land-use practices

What percentage of all new manufacturing employment between 1995 and 1999 in Mexico was contributed by maquiladoras?

• 10%

• 35%

• 25%

• 50%

What was the effect of NAFTA on the manufacturing sector in Canada?

• It led to a significant increase in manufacturing jobs

• It resulted in a decrease in manufacturing jobs

• It had no significant impact

• It led to an increase in the use of automation in manufacturing

What was the impact of NAFTA on the agricultural sector in Mexico?

• It led to a significant increase in agricultural exports

• It resulted in a decrease in the number of small farms

• It had no significant impact

• It led to an increase in the use of genetically modified crops

What happened to the incomes of salaried workers in Mexico between 1993 and 1998?

• They doubled

• They increased by 25%

• They remained the same

• They fell by 25%

What should Central American governments think carefully about before entering into an agreement similar to NAFTA?

• They should think carefully about eliminating their ability to protect the rural sector

• They should think carefully about increasing their ability to implement mechanisms to protect the rural sector

• They should think carefully about increasing subsidies for small and medium producers

• They should think carefully about increasing employment in urban areas

What has been the negative effect of NAFTA for some workers and small family farms in the United States?

• It led to an increase in wages and purchasing power

• It had no negative effect

• It resulted in a decrease in employment in urban areas

• It led to a decrease in employment in the manufacturing sector