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Regional Trading Arrangementseconomics-mcqs › regional-trading-arrangements
Published
30 May 2019
Last updated
28 May 2026

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Which of the following is NOT a common criticism of the North American Free Trade Agreement (NAFTA)?

Multiple choice question for Regional Trading Arrangements. Select an option, then review the explanation below.

Choose the correct answer

Explanation

Common critiques of NAFTA include concerns about job losses in the U.S. to Mexican workers and inadequate environmental protections. However, the idea that U.S. wages will rise relative to Mexican wages is not typically a criticism but rather an expected outcome. Therefore, option A is not a criticism.

Practice related questions from the same subject.

  1. 1.For Country X entering a customs union, under which conditions is trade creation more likely to surpass trade diversion?
  2. 2.Which of the following represents a beneficial and proactive impact of economic integration?
  3. 3.What term describes the increase in trade resulting from the establishment of a regional trading bloc that raises trade volumes beyond previous levels?
  4. 4.What term describes the situation when a regional trade agreement causes a decrease in trade with countries outside the group, benefiting member nations instead?
  5. 5.What is the amount of trade diversion when country A establishes a customs union with country C?

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