Question

Critics of the North American Free Trade Agreement (NAFTA) suggest that much of the increase in exports from Mexico to the United States now involves goods that Mexico otherwise would have exported to other nations. Mexican firms choose to export the goods to the United States, the critics argue, solely because the items receive preferential treatment under NAFTA tariff rules. What term describes what these critics are claiming is occurring with regard to U.S.-Mexican trade as a result of NAFTA? Explain your reasoning.

Short answer

Mexican companies are progressively supplying commodities to the US that had been traditionally supplied to all those other places.

Step-by-step solution

Introduction

Agreement is really a framework for Africa's revolutionary progress, more or less a comprehensive free - trade agreements. It would allow the migration of people and employment, entrepreneurship, business, and copyrighted material through it's own multiple mechanisms.

Given Information

Spillovers develops where trade transfers from a much more successful producer to a somewhat expensive those as a result of unconventional deployment, a financial agreement.

Explanation

The North American Free Trade Agreement (NAFTA) changing and the economy across nations such as the United States of America.

If Mexican businesses may choose sell things to US counties with NAFTA's laws and duties, critics say that Mexican manufacturers essentially diverting products that would have traveled to these other regions to a Us, a NAFTA participant.