Search results
Results from the WOW.Com Content Network
Critics of NAFTA argue that the 1990s economic boom was driven by technological change, however, and that employment growth in the 1990s would have been even greater without NAFTA. [15] Proponents reject the claims of some that the free trade agreement is destroying the manufacturing industry and causing displacement of workers in that industry.
Also, a typical loan contract is just like an employment contract illustrated in the model above: the loan repayment is fixed in all states of nature as long as the borrower is solvent. Hence naturally, economists tried to extend and apply the implicit contract theory to explain these phenomena in the capital market.
According to mainstream economics theory, the selective application of free trade agreements to some countries and tariffs on others can lead to economic inefficiency through the process of trade diversion. It is efficient for a good to be produced by the country which is the lowest cost producer, but this does not always take place if a high ...
The WTO is an international institution that deals with the rules of trade between countries with the view of inter alia "raising standards of living, [and] ensuring full employment…". [3] This is achieved through a series of trade liberalising agreements based on consensus from the WTO's 164 members who form the General Council. [4]
A successful agreement must be flexible and governments need to accept that it will need to evolve. Trade agreements must generate relevant reforms in areas such as customs documentation, but also more fundamentally in relaxing rules for cross-border transportation. Selling to new markets requires adequate finance.
According to the theory of comparative advantage, trade barriers are detrimental to the world economy and decrease overall economic efficiency. Most trade barriers work on the same principle: the imposition of some sort of cost (money, time, bureaucracy, quota) on trade that raises the price or availability of the traded products.
NAFTA GDP – 2012: IMF – World Economic Outlook Databases (October 2013) The North American Free Trade Agreement (NAFTA / ˈ n æ f t ə / NAF-tə; Spanish: Tratado de Libre Comercio de América del Norte, TLCAN; French: Accord de libre-échange nord-américain, ALÉNA) was an agreement signed by Canada, Mexico, and the United States that created a trilateral trade bloc in North America.
An investigation into the limits of Fair Trade as a development tool and the risk of clean-washing, HEI Working Papers, vol. 6, Geneva: Economics Section, Graduate Institute of International Studies, October. Mohan, S. (2010), Fair Trade Without the Froth – a dispassionate economic analysis of 'Fair Trade', London: Institute of Economic Affairs.