UGS 303 Lecture Notes - Lecture 8: North American Free Trade Agreement, Portfolio Investment, Factors Of Production
29 Nov 2017
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Document Summary
The promise of free trade agreements (david ricardo) Ability to produce a particular good or service at a lower cost than another producer. Each country specializes in its comparative advantage + free trade all member countries increase their income. New jobs in the us due to exports to mexico. Financial stability for mexico due to exports to us up and less immigration ot the. Level playing field / world is flat. Not: common tariff, free movement of production factors, harmonization of econ policies (ie common currency) Ensure economic and political stability in mexico. Computers, portfolio investment into mexico"s economy, mexican stock market. 1988 technocrats (believes in free market) vs traditional politicians (protect average folks) Computer system shuts down, uncertainty, and salinas wins. Realm of ideology go for nafta, inlow of capital, hope and belief that free markets work. Technocrats are american trained economics (u chicago, yale & harvard)
