Explain how the quantity of U.S. exports to Mexico and the U.S. government’s tariff revenue

Here is a tip:
A tariff is a tax levied on imports to restrict trade.

Explanation
With association N, the elimination of tariffs lowers the price of imports in each country. The price of Country U's goods imported by Country M falls. Consequently, the exports from Country U increase.

The tariff acts as a source of revenue for the government. The arrival of association N eliminates tariffs between both the countries. As a result, the government's tariff revenue decreases.

Verified Answer
The elimination of tariffs lowered the price of domestic goods in Country M. As a result, Country U's exports to Country M increases. The revenue from tariff received by the government of Country U decreases as the tariffs were abolished.