1. Of which trading blocs are your two target countries members? If not part of a bloc, which bloc do you think they should join? Describe the advantages and disadvantages of being part of a trading bloc.
2. How will Canada’s membership in NAFTA help or hinder your ability to take your product or service to your two target countries?
3. What is the difference between a free trade agreement (such as NAFTA) and an economic union (such as the EU)?
4. What would be the advantages and disadvantages for Canada to join a customs union with the USA and Mexico?
5. What are the stated aims of the Association of South East Asian Nations (ASEAN)? What are the risks of working with a business partner from ASEAN?
Part B: International Money Markets and Foreign Exchange (40 marks) Prepare a 3-4-page report that responds to the following:
1. In many ways, the economy of a country is like the economy of a household. If the household spends more than it earns, then it faces difficult times. On the other hand, if it earns more than it spends, then it can save for a rainy day. Discuss the relevance of this analogy to the economy of a country. In particular, discuss imports, exports, the balance of payments, and the strengthening or weakening of the nation’s currency.
2. When the USA experienced high inflation in the 1970s, Canada also experienced high inflation. Indeed, Canada was said to have “imported inflation” from the USA. If Canada’s exports to the USA
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