Author Question: In addition to tariff lowering provisions, the NAFTA agreement includes two side agreements on A) ... (Read 191 times)

arivle123 · **on:** Jun 30, 2018

In addition to tariff lowering provisions, the NAFTA agreement includes two side agreements on

A) Mexican exchange rate policy and Mexican foreign policy.
B) U.S. exchange rate policy and U.S. foreign policy.
C) environmental and labor market issues.
D) All of the above.

Question 2

International financial flows changed in meaningful ways, and these changes were brought to the attention of policy makers by the Asian financial crisis. Describe three changes.

What will be an ideal response?

aliotak · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

C

Answer to Question 2

First, international financial flows were dramatically greater than in prior decades. Second, many developing countries became active participants in international finance in a meaningful way. Finally, more so than in the past, contagion effects can instantaneously spread a crisis from one area to another.