ADM 3318 Lecture Notes - Lecture 7: Big Mac Index, Free Trade, North American Free Trade Agreement

• School: University of Ottawa
• Department: Administration
• Course: ADM 3318
• Professor: Ado Abdoulkadre

Document Summary

Is economic integration good, or bad: example of a final exam question, good: Allows countries to do what they do best. Creation of economic integration increase trade between partners, which makes both parties more prosperous. Political cooperation: makes you be taken more seriously from others. Makes the stakes higher if you fight with your partner. You are more impressionable than alone: bad. Walmart in another countries smes die. Countries that are part of it, but have a lower economic power. Trade diversion: as trade increase between the parties in the agreement, you privilege these exchanges vs. other exchanges with other countries. German is deciding all economic policies, taxes, immigration, etc. because they contribute more and are more powerful in the eu vs. other countries. Levels of regional integration: free trade vs. Nafta: products can cross borders without any taxes (free trade) Custom union: all taxes that you pay are the same within the union.