Posted in economics on Sep 8th, 2008
This post involves a fictional company called Acme Motors. Acme manufactures automotive engines in Mexico and ships them to Detroit for inclusion in their automobiles. Trade barriers come in many varieties. They are often overt government policies such as tariffs, quotas, and subsidies. More subtle varieties such as transportation costs also exist. Trade barriers of [...]
Posted in economics on Aug 29th, 2008
The economic experience of Mexico has changed tremendously since the acceptance of the North American Free-Trade Agreement (NAFTA) in 1994. Over the last 14 years, Mexico has experienced tremendous growth spurred on by the introduction of capital from foreign investment and gradually reduced tariffs on exports. To understand the changes Mexico has experienced over this [...]
Posted in economics on Aug 25th, 2008
Sawyer and Sprinkle (2006) define globalization very generally as “the increasing openness of an economy” (p. 14). Although this definition is serviceable enough, its vague meaning is not very helpful. More specifically, globalization relates the idea that international factors are becoming increasingly more important in the world economy. Globalization is not a term meant to [...]