Question

Suppose that with free trade, the cost to the United States of importing a keyboard from Mexico is $13.00, and the cost of importing a keyboard from China is $11.00. A keyboard produced in the United States costs $18.00. Suppose further that before NAFTA, the United States maintained a tariff of all keyboard Imports. Then, under NAFTA, all tariffs between Mexico and the United States are removed, while the tariff ina remains in effect. Assume that the tariff does not affect the world price of keyboards. Q & 35 56 $ E 22 Then indicate which country the United States States doesn't import from either country.) $ In the following table, indicate which country the imported keyboards from under NAFTA. Check all United States Imports from ... Scenario Mexico China Before NAFTA 0 Under NAFTA D O In the following table, indicate whether each stakeholder nor loses as a result of NAFTA Loses Neither Gains nor Loses Stakeholder Gains Consumers in the United States Chinese producers Mexican producers creation U.S. government diversion This is an example of trade resulting from a regional agreement.

Answer 1

Be hore NAFTA united states will import from Chinaw due to low cost WARTA united states will import from Mexico due to no tre tariff Chinesse producers loses aus us is a importing from Menico now consumers in us will again as tarifa being removed will decrease the pic us government doses aus hooriff revenue - is losh Menicon producers gains Thuy ý an example of fraude diversio cs Scanned with Je Sulling from a regional agrement CamScanner