UMCA Case study (trading bloc)

Question 1

How is increased trade an advantage of the UMCA trading bloc?

Answer 1

UMCA (formerly NAFTA) created a larger market, leading to increased trade between involved countries

Question 2

How are lower tariffs an advantage of the UMCA trading bloc?

Answer 2

Eliminated most tariffs on trade between member countries, leading to lower prices and increased trade

Question 3

How is increased investment an advantage of the UMCA trading bloc?

Answer 3

Increased investment opportunities between member countries

Question 4

How are improved relations an advantage of the UMCA trading bloc?

Answer 4

Improved economic and political relations between member countries

Question 5

How are job losses a disadvantage of the UMCA trading bloc?

Answer 5

Job losses in certain industries, as some companies relocated to mexico to take advantage of lower labour costs

Question 6

How are environmental concerns a disadvantage of the UMCA trading bloc?

Answer 6

Increased trade led to increased pollution and a lack of regulations in some industries

Question 7

How are political tensions a disadvantage of the UMCA trading bloc?

Answer 7

Created political tensions between the US and Mexico, as some americans blame the agreement for job losses and other issues

Question 8

How is economic inequality a disadvantage of the UMCA trading bloc?

Answer 8

Mexico struggled to compete with the US and Canada due to its lower wages and less-developed economy