Assignment 2 Essay

712 Words 3 Pages

Bringing theory into real life is not an easy task, but answering to these questions might actually help: 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 members of the WTO, the OECD, the APEC, the Pacific Alliance, and have also signed multiple bilateral agreements with many nations, most of them deemed “strategic”. Answer the next two questions in your own words:

a. What are the potential costs and benefits of adopting such a free-trade strategy?
International trade allows a country to specialize in the manufacture and export of products
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3. Read Objective 5.3 of Mexico’s current Plan Nacional de Desarrollo (attached). a. What’s in there? How does the Mexican government frame the issue of international trade according to the theories we reviewed? Write a quick analysis covering all of these elements (if applicable): what’s Mexico’s best economic interest; absolute or comparative advantages; specialization in production of goods; efficiency and supply chains; unrestricted and unregulated trade; National gains from trade and economic growth; Mexico’s factor endowments and domestic demand; economies of scale; the role of firms and private companies; what is next in the foreseeable future.

With a free trade helps to specialize only in products that are efficient so they can be competitive to other companies without trade barriers having countries can export without problems.

3. Case. The governor of the Mexican state you currently live in wants to know what this Trans-Pacific Partnership is all about, and why is it relevant to the state’s economy. Then, let’s just suppose that the governor just hired you to answer that question, very concisely, in a one-page document that covers these three sections:

a. What is the TPP, and why is it important for Mexico to partake in it? (for guidance, please check out the four attached documents).
The Trans-Pacific Partnership (TPP) is a secretive, multinational trade agreement that threatens to

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