Vocabulary
What is a tariff?
A tax on an imported good.
True or False: Free trade has strict wage laws.
False. There are no regulations about wages.
What type of wages to workers in a fair trade system receive?
A fair and liveable wage.
What does NAFTA stand for?
North American Free Trade Agreement
What does USMCA stand for?
United States Mexico Canada Agreement
What is deregulation?
Elimination of trade barriers to increase trade.
True or False: The working conditions are typically poor.
True.
Does fair trade require safe working conditions?
Yes.
When did NAFTA go into effect?
January 1st, 1994
When will USMCA go into effect? How often will it be reviewed?
2020. Every 16 years.
What is an import?
Goods brought into a country from another country.
Are there laws to protect the environment?
No.
True or False: A fair trade company is allowed to put unrestricted amounts of pollutants into the environment?
False. There are strict environmental laws that reduce pollution.
What is the average wage for an auto factory worker under NAFTA?
$8 per day.
What is the required minimum wage for an auto factory worker under the USMCA
$16 per hour.
What is an export?
A good sold to another country?
What is free trade?
Trade between countries with little to no tariffs or regulations.
agrochemicals or GMOs (genetically modified organisms)
What percent of the parts on a car need to be manufactured in North America to avoid tariffs?
62.5%
What percentage of the parts on a car need to be manufactured in North America to avoid tariffs?
75%
What are trade agreements?
Agreements between countries to end or lower tariffs.
Who benefits from free trade?
American business owners and stockholders.
Who benefits the most from fair trade? Why?
Workers.
What is a maquiladora? Where are they located?
A factory owned by American businesses moved to Mexico. They are located along the Mexico/U.S border.
What type of agreement is the USMCA
A protectionist agreement.