Reference no: EM132995483

Analyze the impact of changes in NAFTA to the Canadian economy on both microeconomic and macroeconomic levels as the new USMCA trade deal moves toward its planned implementation on June 1, 2020.
1. Describe 3 main highlights of the original 1994 NAFTA agreement focusing on Canada's trade relations with the US. The highlights should generally describe benefits each country planned to receive from NAFTA.
2. Describe 3 main changes proposed in the re-writing of NAFTA that will eventually become the new USMCA.
3. Using your knowledge of microeconomics learned from this course describe how you think the USMCA will impact the microeconomy of Canada. For instance:
- What industries in particular would benefit?
- How will the lives of every day consumers be impacted?
- What will be the effect on prices for goods and services in the industries impacted by the USMCA?
4. Using your knowledge of macroeconomics learned from this course, describe how you think the USMCA will impact the macroeconomy in Canada. For instance:
- How will these relations impact income distribution in Canada?
- Will Canada's GDP be positively or negatively impacted? Provide reasons.
- How will the USMCA impact unemployment and inflation in the first year it is implemented?
5. Refer to your response in question 2. above. Provide an opinion on how the Covid-19 Pandemic will affect each of the 3 changes proposed. Provide reasons to support your opinion.
6. Provide 1 new trade policy you think the Canadian government should include in the USMCA. How will this new policy economically benefit Canada and individual Canadians? What economic benefits would there be for the US?