QUESTION IMAGE
Question
- what is one negative effect of trade agreements based on the passage?
the signing of free trade agreements like nafta and usmca has made it easier for companies to move production across borders. this has led to increased trade between mexico, the united states, and canada. many american companies have moved their factories to mexico, where wages and production costs are lower. while this has resulted in economic growth for mexico, some american workers have lost their manufacturing jobs. supporters of free trade argue that outsourcing makes products cheaper for consumers, but critics say it harms american workers and encourages lower wages in mexico.
they increase the cost of goods for consumers in developed countries.
they make it difficult for companies to expand their businesses outside of developed countries.
they can result in job losses for workers in developed countries like the u.s.
they prevent trade between countries that are developed and developing
The passage states that American companies moved production to Mexico, leading to some American workers losing manufacturing jobs. It also notes critics argue trade agreements harm American workers. The other options contradict the text: the passage says products are cheaper for consumers, companies easily expanded to Mexico, and trade between developed/developing countries increased.
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They can result in job losses for workers in developed countries like the U.S.