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Tag Archive 'trade'

Trade Barriers

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 […]

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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. Comparative advantage is the “advantage a nation has by being able to produce products or services more efficiently and at lower cost than a competitor nation” (ENERGEX, n.d.). Without comparative […]

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International Trade

International trade presents unique opportunities and threats to workers. Workers in developing countries experience the most opportunities from international trade. Thanks to direct foreign investment, new job opportunities and technological innovation leads to increased wages for workers in developing countries. These opportunities in developing countries may even lead to worker migration as workers in some […]

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Mexico Since NAFTA

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 […]

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U.S. Current Account Deficit

The current account represents the sum of balance on goods, services, income yields, and unilateral transfers. It is an indicator of the flow of capital and goods to and from a country. The U.S. currently runs a current account deficit. This means that more goods and services are being imported into the country than exported.

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