Which statement describes the NAFTA example related to manufacturing?

Which statement describes the NAFTA example related to manufacturing?

• A. The Ford plant in Detroit expanded due to NAFTA.
• B. The Ford plant in Detroit shut down as manufacturing moved to Mexico.
• C. Oil production increased in the region.
• D. Family farms expanded.

Answer: (B)

NAFTA encouraged companies to move manufacturing to lower-cost locations within North America, especially to Mexico, while still serving the North American market. This pattern—offshoring production to reduce labor and operating costs—explains why a major U.S. automaker might shut down a plant in Detroit as its manufacturing moves south to Mexican facilities. The Detroit closure illustrates the real-world impact of shifting production across borders under NAFTA. The other options don’t align with this manufacturing-focused shift: oil production isn’t the central issue of NAFTA’s impact on manufacturing, and expanding family farms isn’t the typical result of a trade agreement that mainly coordinates industrial production and trade rules across borders.

NAFTA encouraged companies to move manufacturing to lower-cost locations within North America, especially to Mexico, while still serving the North American market. This pattern—offshoring production to reduce labor and operating costs—explains why a major U.S. automaker might shut down a plant in Detroit as its manufacturing moves south to Mexican facilities. The Detroit closure illustrates the real-world impact of shifting production across borders under NAFTA.

The other options don’t align with this manufacturing-focused shift: oil production isn’t the central issue of NAFTA’s impact on manufacturing, and expanding family farms isn’t the typical result of a trade agreement that mainly coordinates industrial production and trade rules across borders.