Activity 2 Essay

1046 Words Oct 2nd, 2015 5 Pages
Bibliografía: * eHow (s.f.) Ma Wen Jie, What Are the Costs of Free Trade?. Retrieved on September 07, 2015. From: * Trade Link (August 2008) México elimina los obstáculos a la importación de medicamentos. Retrieved on September 07, 2015. From: * Investopedia (s.f.) Free Trade. Retrieved on September 07, 2015. From: |

1. Mexico has always portrayed itself as one of the most pro-trade countries in the world. For instance, we have a free trade agreement with the United States and Canada, and another one with the European Union. We are active
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While there are many benefits to adopting free trade, there are some potential costs: * Job Losses in Major Importing Countries. Free trade results in manufacturing and engineering job losses in nations with higher labor and production costs. * Displacements in Major Manufacturing Countries. The transfer of jobs to lower wage- and production-cost countries often results in major social and economic displacements in the manufacturing country. * Environmental Degradation in Major Manufacturing Countries. Moving manufacturing to nations with lax environmental regulation results in destruction and devastation of natural systems in the manufacturing nations. * Loss of Production Capabilities in Major Importing Countries. By moving manufacturing and production to lower-cost nations, many previously industrialized nations are losing the capability to manufacture certain types of products. * Human Trafficking. Increases in free trade have resulted in increased human trafficking. Although human trafficking often involves trafficking in women for sexual purposes, there is are major problems with trafficking of people for work in industrial settings.

What can it be done to reduce the costs and maximize the benefits?

2. Drawing upon the new trade theory and Porter's theory of national competitive advantage, outline the Mexican case for one of these national industries: (1) oil

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