Agreements like NAFTA and CAFTA:

Multiple Choice

rely exclusively on MNCs exporting or setting up operations locally rather than buying out a domestic firm.

provide firms with enough security so they cannot go out of business, which simply encourages a lack of efficiency or incentive to monitor costs.

not only reduce barriers to trade but also require additional domestic legal and business reforms in developing nations to protect property rights.

do not include supplemental commitments like the FTAA does on labor and the environment to encourage countries to upgrade their working conditions and environmental protections.