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NAFTA Probably Helped Productivity in Mexico's Maquiladora Sector, But

Question 111

Multiple Choice

NAFTA probably helped productivity in Mexico's maquiladora sector, but:


A) the Mexican peso became undervalued, making it more difficult to export abroad.
B) increased competition from other countries may have limited its output growth.
C) both the Mexican and U.S. governments reversed some of the tariff reductions.
D) Mexico raised taxes on the maquiladoras, which caused tension with the United States.

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