Unit V Assignment: International Economics
500 words or more
Analyze the effect of the political economy on trade agreements and policy. Analyze the various countries to which the United States actively trades or has an embargo upon. How does this fluctuate with the political economy? Use contemporary examples or examples from history to illustrate your point.
Krugman, P., Obstfeld, M., and Melitz, M. (2013). International economics: Theory and policy (9th ed). Upper Saddle River, NJ: Prentice Hall.© BrainMass Inc. brainmass.com October 10, 2019, 8:01 am ad1c9bdddf
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Political economy refers to the interaction between economics, law and politics, and how institutions develop in different social and economic systems. Political economy refers to how public policy is created and implemented.
In the context of the United States it top trade patterns include Canada with a trade of 632.4 billion, and Mexico with a trade of 506.6 billion in 2013. These two countries with whom the US actively trades are a part of the NAFTA. This is the North Atlantic Free Trade Agreement. This is a trilateral trade bloc in North America. The agreement came into force in 1964 Canada has gained because of the increase in bilateral agricultural flows. Mexican factories take in imported raw materials from the US and produce goods for export. Plants have moved to Mexico from the US. Mexico has become a major exporter of meat to the US. NAFTA ...
The answer to this problem explains political economy. The references related to the answer are also included.