Question: Recently, the US has been working with Caribbean nations to form a free trade zone similar to the NAFTA agreement with Mexico. The major industries to be affected are textiles and apparel.
(A) How do you think this agreement would affect growth rates of Caribbean nations?
(B) How is it likely to affect the growth rate of the US economy? The manufacturing sector? The textile and apparel industries? Growth in North and South Carolina?
(C) Would you invest in those countries if this agreement is signed? What other information would you require?
(D) Would you buy or sell stocks of major US textile and apparel firms if you knew this agreement was imminent?