10-19. Why will TAFTA significantly affect world trade when it is finally signed? The United States and the EU have agreed to negotiate a new Transatlantic Free Trade Agreement (TAFTA). Advocates have lauded the initiative as creating major new market opportunities for U.S. and European businesses; opponents have criticized it as harmful to workers and farmers by subjecting them to increased competition. This exercise will help you learn more about the effects of TAFTA on various firms.

Your instructor will divide the class into groups of four to five students each. Working with your group members, identify four products made by firms in each of the two regions

(United States and the EU) that would be part of TAFTA. The four products should include two that would seem to benefit from TAFTA and two that would seem to face increased threats from competitors in the other region as a result of TAFTA.