This project investigates the claims by the newly elected President of the United States of America, that free trade agreement such as the North American Free Trade Agreement and Trans-Pacific Partnership has a negative effect on the American economy. In our analysis, we look at how the aggregate demand increases but less demand for certain goods, such as textile. However, the unemployment rate goes down, despite jobs being lost in one sector. These jobs are then created in a different sector, as a result of specialization and re-arrangement of the American labor force. The free trade agreements encourage growth and specialization. Therefore, free trade agreements are good for the economy in the short run. However, in the long run, the American economy creates a significant trade deficit, that could ruin their economy. We have therefore concluded that free trade agreements are good as they lower the unemployment rate and increase the growth rate. However, we feel that the government play a role in a successful specialization as the labor force needs to be re-educated.
|Uddannelser||Basis - International Samfundsvidenskabelig Bacheloruddannelse, (Bachelor uddannelse) Basis|
|Udgivelsesdato||28 maj 2017|