Which of the following best describes the impact of NAFTA on the economies of the participating countries?

• A. NAFTA led to a significant decrease in employment in all participating countries.
• B. NAFTA caused all participating countries to adopt a single currency.
• C. NAFTA increased trade and economic integration among the United States, Canada, and Mexico.
• D. NAFTA resulted in the elimination of all government regulations in the member countries.

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the context of NAFTA (North American Free Trade Agreement) as a trade agreement between the United States, Canada, and Mexico aimed at reducing trade barriers and increasing economic cooperation.
2. Step 2: Recognize that NAFTA's primary goal was to increase trade flows and economic integration by reducing tariffs and other trade restrictions among the member countries.
3. Step 3: Evaluate the given options by comparing them to the known effects of NAFTA: it did not cause a single currency adoption, nor did it eliminate all government regulations, and it did not uniformly decrease employment in all countries.
4. Step 4: Identify that the option stating NAFTA increased trade and economic integration among the United States, Canada, and Mexico aligns with the widely accepted economic impact of the agreement.
5. Step 5: Conclude that the best description of NAFTA's impact is its role in enhancing trade and economic integration among the participating countries.