NAFTA stands for which of the following?

The correct answer is the North American Free Trade Agreement. This treaty was established to promote trade between the United States, Canada, and Mexico by reducing tariffs and other trade barriers. NAFTA aimed to create a more integrated economic environment across these three nations, facilitating the movement of goods and services, and encouraging economic growth.

Understanding NAFTA is crucial in conversations about trade policy and international economics because it exemplifies how countries can collaborate to boost their economies through free trade. It also serves as a basis for understanding other trade agreements that followed, such as the United States-Mexico-Canada Agreement (USMCA), which replaced NAFTA.