Exploring Economics
8th Edition
ISBN: 9781544363356
Author: Robert L. Sexton
Publisher: Sage Publications
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Chapter 28, Problem 6P
To determine
To explain:
The reasons for which many US labor groups oppose NAFTA. Whether the effect of NAFTA on goods and services produced in the participating countries can be predicted or not. If yes, what is that is to be mentioned.
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- The book states “The pain caused by the movement toward a free trade regime is a short-term phenomenon, while the gains from trade once the transition has been made are both significant and enduring”. Unions in developed nations often oppose imports from low-wage countries because of the negative impacts that occur to the workers. I personally do not believe that such competition is unfair. The union’s argument is in the best interest of the people they represent, and not the country as a whole. If imports are stopped from low-waged countries, it would force developed countries to use and produce local goods and jobs. With more jobs and the use of more local goods, this gives an advantage to the union workers, but leaves our country at a disadvantage. Some disadvantages include the price of goods increasing, other countries not wanting to work with us, we will lose out on products that we can’t make, and it’s ultimately not in the best interest for economic growth in the long run.…arrow_forwardWhich of the following is one of the implications of the New Trade Theory? Group of answer choices A country can gain by using government policies to promote exports. Consumers lose from the lower quality of goods that trade makes available. Countries as a whole must gain from trade. A country may export a good or import it, but not both.arrow_forwardPlease help.arrow_forward
- What are Trade Restrictions? What is Tariffs? What are MFN Tariffs? What is Effectively Applied Tariffs (with Trade Agreements)? What are Non-Tariff Measures (NTMs)?arrow_forwardSome Legal experts have described GATT and GATS as the following: “born like twins joined at the hip, but still entirely different.” Discuss the similarities and the differences between the General Agreement on Tariffs and Trade (GATT) and the General Agreement on Trade in Services (GATS), with reference to National Treatment Principles and Most Favoured Nation Principles.arrow_forwardWhy might the use of a tariff to decrease aggregate unemployment in a country eventually generate an increase in aggregate unemployment in that country?arrow_forward
- Would the U.S. government gain any advantage from using tariffs or quotas to restrict imports?arrow_forwardIn intentional trade negotiations, it is very common for a country's trade representative to threaten to enact protectionist policy that include: tariffs, quotas, quota-tariff, national security restrictions, and domestic content requirements. Define what each of these protection policies. Explain why quotas are usually the least creditable threat. If the trade represents a small importing country, would it make economic sense to threaten tariffs? Why or Why not?arrow_forwardCan you answer this please? Explain the concept of a trade embargo and its effect on the country where the embargo has been placed.Discuss the economic rationales for Governments to intervene in international trade which would affect their country.arrow_forward
- Why is trade a much more complex thing than official measures?arrow_forwardWhat is dumping? Why does prohibiting it often work better in theory than in practice?arrow_forwardWhich of the below statements does NOT reflect the ideas expressed by the author Charles Wheelan in the chapter titled, "Trade and Globalization," in the book, Naked Economics: Undressing the Dismal Science? Group of answer choices A majority of U.S. jobs lost since 2000 have been to technology and not to China, Vietnam or Mexico. Nearly all theory and evidence suggest that the benefits of international trade far exceed the costs. Tariffs and other barriers to imports will bring manufacturing jobs back into the U.S., exactly as President Trump promised. Trade creates losers, like any kind of market.arrow_forward
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