Global Trade

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Week Eleven: Global Trade

1. What has been the prevailing theory regarding the impacts of freeing trade between nations, the theory which was used (in part) to justify NAFTA? (In other words, what did nations hope that the effect of NAFTA on Mexico would be?)

I think the primary reason was the promotion and endorsement of acceptance of democracy in the North American countries – USA, Canada and Specifically Mexico. It hoped Mexico would have a democratic political system.

2.According to the prevailing theory, what effect should market reforms have on political systems? Why?

Because of the strong endorsement of a democratic system of government in Mexico – rapid and prolonged economic affects would take place. The political system could team with the private sector to promote democracy. Thus free trade would affect the democratic system.

3.What is the main argument of Cameron and Wise and how (in fewer than two sentences) do they justify the argument (3 sentences total.)

The authors agree with Adams that liberalization should propel the political transition of Mexico. They however concede that the “loosening of the moorings” are attributed to the other conditions in the country like the underdevelopment of skilled labor and the poor economy of the country and thus the 3rd proposal of the theory might comply with the conditions in Mexico.

4.What is your favorite, most disagreeable, most profound, most surprising, etc. quote from the article? (It doesn’t have to be all of these. I’m asking you to pick a quote that struck you in a meaningful way.) In NO MORE THAN FOUR sentences, explain why this quote intrigued you so much.

“The Salinas Denouement: Symbol over Substance”
In Mexico and throughout North America the severity of the 1982-1983 external shocks caught policy makers completely off guard. Suddenly Mexico faced the sort of volatility that had prevailed in the Southern Cone countries, situation worse with...
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