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Author Question: Countries with low wages will always be able to export to countries with high wages. Indicate ... (Read 93 times)

segrsyd

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on: Jun 30, 2018
Countries with low wages will always be able to export to countries with high wages.
 
  Indicate whether the statement is true or false

Question 2

One reason why most economists forecast that the effects of NAFTA on the U.S. economy would be small is because
 
  A) NAFTA does not bring down tariffs far enough.
  B) the Mexican economy is small relative to the U.S. economy.
  C) NAFTA trade opening provisions only cover a handful of sectors.
  D) Mexico was not expected to live up to its obligations under the agreement.
  E) the United States was not expected to live up to its obligations under the agreement.


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itsakadoozi

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

FALSE
Explanation: Low wages might be too high relative to differences in labor productivity.

Answer to Question 2

B


segrsyd

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

kilada

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Reply 3 on: Yesterday
Gracias!

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