Practice mode Regional Trading Arrangements

Which US factor of production is most likely to lose out (see its factor payment fall) because of NAFTA?

Correct answer D. Unskilled labour

Explanation

Mexico is relatively abundant in unskilled labour, so freer trade lets the US import more labour-intensive goods, lowering demand for and pay of unskilled US workers.

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Which US factor of production is most likely to lose out (see its factor payment fall) because of NAFTA?

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Which US factor of production is most likely to lose out (see its factor payment fall) because of NAFTA?

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