Question

55 how did the north american free trade agreement (nafta) affect the u.s. economy?
a it led to significantly less trade between the united states and both mexico and canada.
b it reduced tariffs and made it easier for the united states to trade with mexico and canada.
c it caused a collapse in the u.s. service industry as a result of trade with mexico and canada.
d it forced the united states to lower wages for workers to compete with mexico and canada.

Explanation:

NAFTA (North American Free Trade Agreement) aimed to reduce trade barriers like tariffs between the US, Mexico, and Canada. Option A is incorrect as NAFTA increased trade, not reduced it. Option C is incorrect as NAFTA didn't collapse the US service industry; in fact, trade in services also expanded. Option D is incorrect as NAFTA's impact on wages was more complex and not a direct forced lowering to compete, and it increased trade and economic integration. Option B (the second option, "It reduced tariffs and made it easier for the United States to trade with Mexico and Canada") is correct because NAFTA's core was eliminating/reducing tariffs and trade barriers, facilitating trade among the three countries.

Answer:

B. It reduced tariffs and made it easier for the United States to trade with Mexico and Canada