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TAMU ECON 452 - E452 Reading 9c Questions

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Page 1Page 2NameECONOMICS 452 QUIZ 9C “Did NAFTA Spur Texas Exports” FRBD Southwest EconomyMarch/April 2006, “Doing Doha Down” & “Asian Trade: The Noodle Bowl” The Economist 09-03-20091. What did proponents predict, versus what did critics warn, that effects ofNAFTA would be? 2. Why might a trade deal such as NAFTA have a different effect on some statesthan on the nation as a whole? 3. Explain how a regional trade agreement could reduce overall economic welfare.4. Did NAFTA increase Texas exports to Mexico by more than the nation as awhole, as might expect due to sharing a long border with Mexico? How did thegrowth in Texas exports to Mexico compare to the growth in US exports toMexico in the periods before and after NAFTA?5. How did NAFTA affect Texas exports to Canada? Why is that surprising?How about Texas exports to Asia, Europe and Latin America? Since NAFTA didnot open up markets outside North America, how could it have affected Texasexports to the rest of the world? 6. Have all exporting industries in Texas shared equally in the expansion? 7. Controlling for other factors affecting the volume of exports, how much of the111% increase in Texas exports to Mexico between 1993 and 2000 does NAFTAaccount for? And how much credit does NAFTA receive for the 131% gain in Texas exports toCanada over that same period? 8. Why do many fear bilateral and regional trade agreements are stumbling blocksthat obstruct prospects for multilateral agreements, rather than stepping stonestoward goal of free


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TAMU ECON 452 - E452 Reading 9c Questions

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