NAFTA increased U.S. investment in Mexico because

A. the United States wanted to create job openings for low-skilled labor in the United States.
B. Mexico has been witnessing a gradual increase in transportation costs.
C. the United States wanted to provide only high-skilled labor opportunities for Americans.
D. Mexico's infrastructure is better than that of the United States.
E. Mexico has substantially lower labor costs for low-skilled employees.


Answer: E

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