Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Explain what the statements made by Michael Plummer and Pearl Iboshi (1994) mean or imply regarding NAFTA affecting ASEAN countries. As the United States is

Explain what the statements made by Michael Plummer and Pearl Iboshi (1994) mean or imply regarding NAFTA affecting ASEAN countries.

"As the United States is a critical trade and investment partner for the Association of Southeast Asian Nations (ASEAN) member countries, the North American Free Trade Agreement (NAFTA) is of significant concern to the region. Studies using computational general equilibrium models and other economy-wide approaches to the economic implications of NAFTA generally show minor effects on non-partners, ASEAN countries included. However, these small effects on aggregate output could mask important sectoral effects on export industries deemed important to the economic development of individual ASEAN countries. It is found that significant trade and investment diversion will occur in a number of important sectors, in more traditional manufactured industries such as textiles and clothing, as well as in rapidly-growing sectors characterized by higher levels of technical sophistication such as transistor values and other electric components. The possibility of investment diversion and other effects of NAFTA for ASEAN is high."

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Business Research Methods

Authors: Joe F. Hair, Michael Page, Niek Brunsveld

4th Edition

0367196182, 978-0367196189

More Books

Students also viewed these Economics questions