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Business, 07.11.2019 21:31 Fionaauggies

Trade creation and trade diversion suppose that with free trade, the cost to the united states of importing a backpack from mexico is $10.00, and the cost of importing a backpack from china is $9.00. a backpack produced in the united states costs $14.00 suppose urther that before nafta the united states maintained a tariff of60% against all backpack imports. then under nafta, all tariffs between mexico and the united states are removed, while the tariff against imports from china remains in effect. assume that the tariff does not affect the world price of backpacks. in the fallowing table, indicate which country the united states imported backpacks frem beoe nafta. then indicate wich country the united states imported backpacks from under nafta. check a that apply. (note: leave the row blank if the united states doesnt import from ether country.) united states imports from china scenario before nafta under nafta mexico in the fallowing table, indicate whether each stakeholder gains, loses, or neither gains nor loses as a resuit of nafta. gains loses neither gains nor loses consumers in the united states o chinese producers mexican producers this is an example of trade resulting from a regional agreement.

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