International Business: Competing in the Global Marketplace
12th Edition
ISBN: 9781259929441
Author: Charles W. L. Hill Dr, G. Tomas M. Hult
Publisher: McGraw-Hill Education
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Question
Chapter 9, Problem 1CTD
Summary Introduction
To discuss: The benefits of NAFTA to Country C, Country M, Country U economies.
Introduction:
NAFTA (North American free trade agreement) is the agreement which is signed by the Country C, Country M, and Country U to have a free trade among the three countries.
Expert Solution & Answer
Explanation of Solution
The benefits of NAFTA to Country C, Country M, Country U economies are as follows:
- NAFTA provides a free trade between the three countries namely Country C, Country M, and Country U this helps to enlarge the productive base for these countries.
- When the low skilled jobs move to Country M from Country C and Country U, then Country M will strengthen its economy. This gives Country M an ability to purchase the products of Country U and C’s high cost products
- This benefits the Country M to increase its high quality imports.
- The international competitiveness of Country C and Country U moves the production to Country M to attain the benefits of lower labor costs which helps to compete with the competitors of Country A and Country.
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Chapter 9 Solutions
International Business: Competing in the Global Marketplace
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