Using a Model of Imperfect Competition, Economist Daniel Trefler Concluded

question 98

Multiple Choice

Using a model of imperfect competition, economist Daniel Trefler concluded that the North American Free Trade Agreement:

• A) cost Canada more than 100,000 jobs that were never replaced.
• B) caused no job loss in Canada.
• C) caused Canada to lose 5% of jobs in manufacturing because Canadian tariffs had to be cut, but over time the trade agreement created higher productivity and more jobs to offset losses.
• D) created new jobs in Canada from day one, as firms sold across the border and undercut U.S. firms.

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Definitions:

Intermediate Planning

The process of setting medium-term goals and determining the necessary steps to achieve them, usually positioned between strategic and operational planning.

Operational Planning

The process of planning specific day-to-day activities and resources required to achieve an organization's strategic goals, focusing on short-term actions and schedules.

Management By Objectives (MBO)

A management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees.

Subordinates

Individuals who work under the command or supervision of someone in a higher position within an organization.