UGS 303 Lecture Notes - Lecture 10: George H. W. Bush, North American Free Trade Agreement, Comparative Advantage

• School: UT-Austin
• Department: Undergraduate Studies
• Course: UGS 303
• Professor: K Greene

Document Summary

Exporters access mexico"s market, create more jobs. Consumers get cheaper prices cheaper labor, cheaper. Importers move manufacturing to mexico for cheaper labor prices. Mexico (needs money and capital after 1982 crisis) Exporters access world"s largest market, create more jobs. Consumers get access to more and higher quality goods. * most political voices were in favor of nafta. Not really trilateral trade more like two bilateral trades. Much more goes between us/mexico than canada/mexico. We don"t know because we don"t know a world without nafta (argues about causes) we don"t have the counterfactual condition so therefore we never know. Now huge amount of trade between us/mexico compared to rest of world. Fluctuates between 2nd and 3rd largest trading partner. Impact of trade with the us is much more significant for mexico b/c its" economy is so much smaller. Maquila assembly plants mostly located on the border. Agriculture mexico has a disadvantage us has large scale farms, gmos, more money.