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Author Question: Why are trade agreements between the U.S. and Mexico more controversial than trade agreements ... (Read 107 times)

jace

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on: Jun 30, 2018
Why are trade agreements between the U.S. and Mexico more controversial than trade agreements between the U.S. and Canada?
 
  What will be an ideal response?

Question 2

Critique the infant industry or the labor argument for protection.
 
  What will be an ideal response?


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hramirez205

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Reply #1 on: Jun 30, 2018
Answer to Question 1

Because of difference in levels of economic development is greater, which leads to larger political and social tensions.

Answer to Question 2

Critique of the labor argument largely rests on the confusion between nominal wage rate differences and productivity wages.
Critique of the infant industry argument is based on 1 ) the rent seeking and misapplication of what it means to be an infant industry, 2 ) the government's ability to correctly identify such industries vs. the market's ability to do so, 3 ) the protection creates disincentives for efficiency and low-cost production.


jace

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Reply 2 on: Jun 30, 2018
Gracias!

ryansturges

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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