How did the north american free trade agreement (nafta) benefit the us economy?

The NAFTA agreement benefits the US economy because it creates a free trade zone that comprises the territories of the US, Canada and Mexico. Outside the US borders but inside this zone, US products compete in equal conditions with the domestic production respectively in the Canadian and Mexican markets, enhancing US exports and total GDP.

Moreover, it also allows products from these two countries to enter the US markets and to compete in equal conditions with the domestic producers, which at first might be regarded as a drawback but it is not, because stronger competition forces US producers to keep on investing money on innovation and improvements in order to beat their rivals and attract consumers. Through this process, competition leads to more efficient industries which are able to produce at a lower cost. Finally, consumers are benefited too because they can acquire products at a cheaper market price.

(B) NAFTA boosted exports of electronic goods.

Explanation:

when a country suffers, for example, a drought period, the market product is affected for a low offer, in this case, potatoes; the government has to tax to the households, which have to give more money for the potatoes which they consume, that situation make them consume substitute goods even through loans, it could increase the financial market movement and the inflationary phenomena, the business has to increase salaries in order to the employees could buy a more expensive food (potatoes) and in order to inflation tha business had to buy expensive supplies in the factor market, while the rest of the world have to gain more money to consume the same amount of potatoes.

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