1. What are the trade diversion and trade creation effects of
trade agreements? Explain trade diversion and trade creation
effects of the following:
i. US getting out of TPP Using the
ii. US being part of NAFTA
Define the concept of trade creation and trade diversion with
respect to regional economic integration. Given that, integration
can both create and divert trade, under what circumstances will
regional integration be in the best interest of the world economy?
b) In what ways could regional trade blocks serve as either a
building block or stumbling block (i.e., an
obstacle) to those agreements envisioned by multilateral agreements
sponsored by the WTO?
Proponents of NAFTA argued that free trade areas provide
dynamic, creation of new industries, economies of scale, and static
trade creation. Illustrate?
proponents of NAFTA argued that free trade areas provide dynamic,
creation of new industries, economies of scale, and static trade
creation. illustrate?
Did NAFTA fail Mexico? What objective data is there to show
whether NAFTA was a relative success or a relative failure? Was
Mexico better off or worse off as a result of NAFTA? How do you
know?
The North American
Free Trade Agreement (NAFTA) is a trade agreement between the
United States, Canada, and Mexico whose purpose is to eliminate
tariffs between the countries and promote all aspects of
international trade.
There are many
arguments for and against the treaty. One of the arguments against
centers on the fact that Mexican industries do not have to meet the
same environmental regulations as industries in the United States
and Canada. The U.S. and Canada have intervened in the...