National Occupational Competency Testing Institute (NOCTI) Business Practice Exam

Which countries were involved in the North American Free Trade Agreement (NAFTA)?

1. Mexico, the US, and Canada

2. United States, Canada, and China

3. Canada, Mexico, and Brazil

4. US, Mexico, and Japan

The correct answer is: Mexico, the US, and Canada

The North American Free Trade Agreement (NAFTA), which was enacted in 1994, was established to promote trade and economic cooperation among three specific countries: Mexico, the United States, and Canada. This agreement aimed to eliminate trade barriers and tariffs, thus facilitating a more seamless flow of goods and services across their borders. The involvement of these three countries was significant as they share a close geographical proximity and economic interdependence, which made the agreement particularly beneficial for facilitating trade relations. NAFTA contributed to increased economic activity, investment, and job creation within these countries over the years, solidifying their trade ties. The other options include countries not part of NAFTA. For example, China, Brazil, and Japan were not signatories to this specific agreement, which exclusively consisted of the three North American nations involved. Understanding the participants in NAFTA is crucial for comprehending its purpose and the implications it had on trade policies in North America.