What was the main purpose of NAFTA when it was enacted?

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Prepare for the FLVS US Government Module 8 DBA Test with our interactive quiz featuring multiple choice questions and detailed explanations. Enhance your understanding and boost your confidence before the assessment!

The main purpose of NAFTA, enacted in 1994, was to reduce trade barriers among North American countries, specifically the United States, Canada, and Mexico. By eliminating tariffs and other trade obstacles, NAFTA aimed to facilitate smoother and more efficient trade between these nations. This initiative not only aimed to enhance economic cooperation but also sought to stimulate growth and create jobs by increasing cross-border trade.

Reducing trade barriers under NAFTA allowed for a more integrated North American economy, which benefitted businesses and consumers by providing access to a larger market and encouraging competition. This fostered an environment where goods could move more freely across borders, thereby increasing economic activity and contributing to regional economic stability.

The other options, like increasing tariffs or protecting domestic industries, run counter to NAFTA's goals, as the agreement was designed specifically to promote free trade rather than restrict it. Additionally, NAFTA did not focus on establishing a military alliance, which is unrelated to its primary objective of enhancing trade relationships.

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