# microeconomics

I am having a problem with one of my homework questions and would like some help if possible...here is the question..

According to an article in the New York Times (Nov. 5, 1993),"many Midwest wheat farmers oppose the NAFTA free trade agreement asmuch as many corn farmers support it." for simplicity, assume that the U.S. is a small country in the markets for both corn and wheat, and that without the free trade agreement, the U.S. would not trade these commoditites internationally..
Based on the report, do you think the world wheat price is above or below the U.S. no-trade wheat price? Do you think the world corn price is above or below the U.S. no-trade corn price? Now analyze the welfare consequences of NAFTA in both markets.

Assuming the farmers are self-interested in their own economic welfare...

If the wheat farmers oppose NAFTA, they must fear the US will become an importer of wheat; foreign countries want access to the US wheat market because of the relatively high prices in the US market. If corn growers support NAFTA, they see foreign markets as export possibilities because of the relatively high prices in the foreign markets.

Free trade almost always leads to a net increase in economic welfare, both domestically and internationally.

1. 👍 0
2. 👎 0
3. 👁 431

## Similar Questions

1. ### Math- Geometry Proofs

What are some ways to prove that a triange is isoscles? i have to make a two column proof based on a problem. What is the exact problem I need help with my geometry homework. We are doing proofs and i need some help because proofs

asked by Jenny on November 21, 2006
2. ### Algebra

How do I work this problem, it is not a homework problem but a problem similar to a homework problem. I know i need to factor the left side of the problem. here is what I have so far.. x^2-2x+1=7 x^2-2x+1-7=7-7 x^2-2x-6=0 here is

asked by Becca on October 3, 2007
3. ### Algenra

How do I work this problem, it is not a homework problem but a problem similar to a homework problem. I know i need to factor the left side of the problem. here is what I have so far.. x^2-2x+1=7 x^2-2x+1-7=7-7 x^2-2x-6=0 here is

asked by Becca on October 3, 2007
4. ### Spanish-Check please! I need help

Please check-I'm having a problem interpreting these questions and I have to answer them for homework. Could you please check my translation I'm not sure what these questions mean and I have to answer them for homework ¿Qué

asked by Ellen on March 21, 2012

Good evening ~ I have 2 questions. Kelsey was assigned math homework. He was given 8 word problems to solve. He estimated that it would take him 5 mins. to solve each problem (THAT WOULD TAKE 40 MINS. FOR KELSEY TO COMPLETE HIS

asked by Ross on December 4, 2008
6. ### economics

I need some serious help with the follow three questions. thanks Public Goods Homework Problem

asked by John on October 12, 2006
7. ### Calculus

Hi there I am having some troubles trying to do my calculus homework and I really need help trying to do this problem from my homework: Set up the problem and do not solve: The mass of the solid bounded by the surfaces 2x^2 +

asked by shylo on December 3, 2009
8. ### biochemistry

Calculate the pH of the solutions obtained by dissolving the following in a liter of water: 0.2 mole of glycine plus 0.1 mole of NaOH I know the answer is ph = 9.60 which i know is pka2 of glycine but im not sure how to set up

asked by michelle on January 30, 2015
9. ### psychology

Could someone please provide help formulating interview questions relating to learning, intelligence, cognition, problem solving, motivation, effects of gender and culture on emotions and personality. We will very much enjoy

asked by Anonymous on June 6, 2007
10. ### Homework

How can I get help with my homework. Please remember these things: 1. This is a homework help website; please put your subject (math, science, English, or ??) in the subject line to make it faster for each teacher to find those

asked by Chante on December 11, 2006
11. ### TO ALL STUDENTS

Please remember these things: 1. This is a homework help website; please put your subject (math, science, English, or ??) in the subject line to make it faster for each teacher to find those questions in his/her areas. 2. Please

asked by Writeacher on October 9, 2006

More Similar Questions