During the 1980s, several Latin American countries had currencies pegged to the U.S. dollar. Consider three such

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During the 1980s, several Latin American countries had currencies pegged to the U.S. dollar. Consider three such countries: Belize, Bolivia, and Mexico. A larger share of Mexico’s exports was/is sold in the United States relative to Belizean and Bolivian exports to the United States. In addition, Mexico shares a large geographic border with the United States, whereas Belize is located further south in Central America, with coastal access to the United States through the Caribbean Sea. Bolivia is located in South America and is landlocked. Compare and contrast these three countries in terms of their likely degree of integration symmetry with the United States. Plot Belize, Bolivia, and Mexico on the symmetry-integration diagram relative to the United States.

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International Economics

ISBN: 9781319218508

5th Edition

Authors: Robert C. Feenstra, Alan M. Taylor

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