A case study of NAFTA, with regard to the benefits for Canada from U.S. trade, found that:
a. Canada was not able to increase its exports due to barriers still remaining.
b. Canada had modest gains but was harmed by immigration into the United States from Mexico.
c. Canada had more trade diversion than trade creation and so was harmed overall.
d. Canada had more trade creation than trade diversion and so benefited overall.
Ans: d. Canada had more trade creation than trade diversion and so benefited overall.
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If a production technology has diminishing marginal product of all inputs throughout, then the producer choice set is convex.
Answer the following statement true (T) or false (F)
The factor of production called "capital" refers to:
A. any input that's not a human being or dirt. B. any piece of raw material that is used to produce goods and services. C. the amount of money a firm has access in order to run its business. D. manufactured goods that are used to produce new goods.