What type of economic integration is exemplified by NAFTA? How ...

[Bob-Dole]

What type of economic integration is exemplified by NAFTA? How has NAFTA benefited the countries involved?
 
  What will be an ideal response?

Question 2

The Bretton Woods Agreement established a system of fixed exchange rates under which each IMF member country set a ________.
 
  A) quota
  B) par value
  C) gold standard
  D) nominal interest rate

[Smiles0805]

Answer to Question 1

A free trade area, such as NAFTA, encourages trade among its members by eliminating trade barriers (tariffs, quotas, and other nontariff barriers NTBs) among them. NAFTA reduces tariffs and NTBs to trade among Canada, Mexico, and the United States. Most experts believe that NAFTA has benefited all three countries, although the gains have been more modest in Canada and the United States than most NAFTA advocates expected. NAFTA's overall impact on the Mexican economy has been dramatic.

Answer to Question 2

B