Economist Krugman Says Nafta Wasn't Great But Not Demonic

The video discusses the geopolitical and economic threats posed by China and other Asian countries to the US, emphasizing the importance of US involvement in trade deals like TPP. It explores the leverage the US holds in global trade, particularly with China and the EU, and the potential consequences of breaking trade commitments. The impact of NAFTA on Mexico's economic development is analyzed, highlighting issues like wage arbitrage and infrastructure. Finally, the border adjustment tax is examined, questioning its effectiveness as a revenue alternative and its impact on US consumers.

What is the primary reason for the lack of tight economic integration among countries like China, Japan, and Vietnam?

• Shared political systems

• Distrust among countries

• Economic similarities

• Cultural similarities

Why is the US considered to have leverage in global trade deals?

• It has the largest consumer market

• It produces the most goods

• It has the most advanced technology

• It has the strongest military

What is a major criticism of NAFTA regarding its impact on workers?

• It improved infrastructure in Mexico

• It led to significant job creation

• It primarily benefited multinational corporations

• It increased wages for all workers

What is a border adjustment tax primarily considered as?

• A method to increase consumer taxes

• A tax on foreign goods

• A low-cost tax solution

• A way to reduce corporate taxes

What is one of the main challenges Mexico faces in moving up the value chain?

• Problems with infrastructure and education

• Excessive foreign investment

• High labor costs

• Lack of natural resources