When the United States and Mexico trade:?

Question

A) the United States will be more worse off because wages in Mexico are so low.

B) Mexico will be worse off because the United States is a stronger economic power.

C) both Mexico and the United States will be better off.

D) both Mexico and the United States will be worse off.

Answer 1

If..well, you go by a social standard and how people have lost jobs in US and how sweatshops and other businesses have replaced local Mexican businesses (and may have exploited some Mexican workers), then no everybody is worse off.

However, should one go by economical theory it would be C.

I agree with the first responder, there are debates and arguments over NAFTA and much to consider.  However, by what I learned in economics, and theories, both nations would be better off (if they are truly, totally better is another thing to argue).

Answer 2

The question leave many open issues. BUT, without taking into consideration of NAFTA, free trade and the economic loss of American jobs, C.