Compare and contrast NAFTA and the EU in terms of the types of agreements that they are, the institutions that operate under the agreement, and the long term goals of the arrangements
What will be an ideal response?
NAFTA is a FTA with a limited institutional framework that settles trade disputes between members, and oversees the provisions of side agreements involving labor and the environment. There are no stated long term goals to further integrate any of the three economies. Indeed, it would take a major change of attitudes in both Canada and Mexico to convince either country to pursue further economic integration, especially with the United States. The one long term goal often expressed by the NAFTA countries is to expand the agreement to bring in other countries from the Western Hemisphere such as Chile. The EU is a customs union that hopes ultimately to transform itself into a full economic union with a single currency. The EU has an extensive governmental structure with a parliament, an executive branch and a judiciary.
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Privatizing a commons gives the person who owns it an incentive to
A) exploit the resource until it is depleted. B) restrict it from being used at all. C) manage it carefully. D) make it available to everyone without restriction.
The mound-shaped yield curve in the figure above indicates that the inflation rate is expected to
A) remain constant in the near-term and fall later on. B) fall moderately in the near-term and rise later on. C) rise moderately in the near-term and fall later on. D) remain unchanged in the near-term and rise later on.