Microeconomics,, 16th Canadian Edition

a. A regional trade agreement, such as NAFTA, or a
common market, such as the European Union, allows for
, whereby trade within the group of member
countries is increased.
b. A regional trade agreement, such as NAFTA, or a
common market, such as the European Union, also
results in , whereby trade within the group of
member countries replaces trade previously done with
other.
c. The fundamental principle that guides the NAFTA is the
principle of , which means that any member
country can implement the policies of its choosing, as
long as and firms are treated equally.