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21st Century International Trade

Each response should be at least 200 words QUESTION 1 What is the difference between trade creation and trade diversion? Currently, the United States is negotiating a bilateral free trade agreement with New Zealand. Would you expect this free trade agreement between two countries to produce more trade creation or more trade diversion? Explain your answer. QUESTION 2 After highlighting the key differences between a free trade area, a customs union, and a common market, the textbook illustrates immediate differences between the arrangement of NAFTA and that of the European Union (EU). Beyond those described, identify two other economic arrangements (variables, laws) that distinguish NAFTA from the EU. QUESTION 3 List and analyze the arguments in favor of using trade barriers to enforce labor standards. QUESTION 4 The World Trade Organization (WTO) is an international organization created to provide rules for the resolution of trade disputes between nations and act as a forum for the discussion and implementation of further reduction in trade barriers. Critics of the WTO have a variety of complaints about the organization. What are the main concerns and criticism about the WTO?


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