ADM 3318 Lecture Notes - Lecture 6: North American Free Trade Agreement, Bertil Ohlin, Eli Heckscher
16 Feb 2018
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Document Summary
Theory - practice: the economic arguments surrounding the benefits and costs of free trade in goods and services are not abstract academic arguments. International trade theory has shaped the economic policy of many nations for the past 50 years. It was the driver behind the world trade organization and regional trading blocs such as: european union, north american free trade agreement (nafta) Canadian consumers should buy products produced in canada, by canadian companies, whenever possible. Mercantilism an economic philosophy advocating that countries should simultaneously encourage exports and discourage imports. The flaw with mercantilism was that it viewed trade as a zero-sum game. A country has an absolute advantage in the production of a product when it is more efficient than any other country in producing it. Theory that countries should specialize in the production of goods and services they can produce most efficiently.
