Are you for or against tree trade? Are you for or against NAFTA? What is the eco

Question

Are you for or against tree trade? Are you for or against NAFTA? What is the economic basis for trade? Explain the underlying lads that support tree trade and give an example of a good that you purchased recently that is based on resource differences. What are some examples of goods that the United States has comparative advantage in producing? Take a look at the tag of the shirt/dress/pants that you are wearing today. Where was it made? Anyone wearing Made in USA items of clothing today? We sometimes hear people say Buy American. Why don't we? What is the basis of international trade? What are the benefits and the costs? Under what conditions would you advocate for trade restrictions?

Explanation / Answer

The North American free trade agreement is basically a treaty which was entered into by the United States, Canada and Mexico which came into effect from 1st January, 1994 with the aim to eliminate tariff barriers to agricultural, manufacturing and services, to remove investment restrictions and to protect intellectual property rights. I completely affirm free trade and NAFTA since this treaty has opened many doors of opportunities and flourishment for all US citizens. Every consumer of the country participates in international trade every day whenever they purchase they purchase any goods and services that cross international borders. NAFTA has provided many benefits few of which can be named as follows:-

US enjoys comparative advantage in various sectors like banking, aerospace, defense equipment, and technology.   According to Adam Smith, the father of economics, the basis for international trade is absolute cost advantage i.e two countries would be mutually beneficial if the cost of producing a commodity in one country is lesser than the cost of producing the same commodity in the other country.

I would favor trade restrictions under the following scenario:-

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