Unformatted text preview: NAFTA, merchandise trade grew from US$289 Billion to US$1.1 Trillion a fourfold increase. Trade has the potential to grow exponentially. A disadvantage is that it can also create an easy way for businesses to export jobs, and there for creating an economic crisis for working people. A prime example is how the auto industry packed up and left the Midwest states of America and relocated to Canada and Mexico. There were whole neighborhoods devastated by the decline in jobs and rise in poverty. Explain why we don’t see stronger regional economic integration organizations in Africa? 5) Why do countries trade with one another? Explain the theory of comparative advantage. Explain the theory of national competitive advantage of industries (Porter’s diamond). Why are these important international trade theories?...
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- Spring '14