Problem 9
Predicting Economic Trends Before NAFTA was passed, some experts predicted a reduction in illegal immigration from Mexico to the United States. In fact, in the first few years after NAFTA went into effect, illegal immigration increased. What reasoning might have explained the prediction that illegal immigration would decline? What reasons might explain the increase?
Problem 10
What are the advantages of a large supply of foreign investment in a domestic economy? What are the disadvantages?
Problem 10
Challenge A trade agreement between Kenya and some nations in Europe requires Kenyan farmers, most of whom have small peasant farms, to comply with 400 conditions before they can export their produce to European countries. They must be able to document the fertilizers, pesticides, and other additives used in the growing of their crops. How would you categorize this trade restriction? What impact do you think it will have on Kenyan exports and prices in the European nations?
Problem 10
Challenge At the Hong Kong gathering of the World Trade Organization in \(2005,\) Supachai Panitchpakdi, secretary general of the United Nations Conference on Trade and Development (UNCTAD) said: "Rich countries will have to reject not just protectionism, but populism, too. They will have to speak honestly to their people about the changing economies of the 21 st century, and about global interdependence and the fact that prosperity elsewhere means prosperity and jobs at home." Write a brief essay that "speaks honestly" to the rich countries about the changing economies of the 21 st century.
