Use national demand and supply curves to show (a) the incentives for trade to begin between nations. (b) the effect on the likely pattern of trade of a change in technology in A that causes A's national supply curve to shift out.
(c) the effect on the likely pattern of trade of a change in tastes in B in favor of good S.
Question 2
In leading the opposition to the adoption of NAFTA, H. Ross Perot argued that NAFTA would lead to
A) a loss of U.S. competitiveness with Canada.
B) a loss of U.S. manufacturing jobs to Mexico.
C) a loss of U.S. willingness to negotiate the Uruguay Round.
D) All of the above.