International trade allows us to expand our market for goods and services, while enjoying cheaper prices and more options as a result of competition. It is more efficient than an autarky, which is when a country is completely independent from international trade and as a result lacks options and offers higher prices. The NAFTA agreement illustrated how international, without tariffs, benefited both importers and exporters by creating interdependence. Mexico began to produce more goods, to produce those goods they imported materials form the U.S., and by producing more goods more jobs were created in Mexico. With an increase in jobs Mexico also saw an increase in their standard of living. Mexico had a comparative advantage over the U.S. by producing
