2. Economics
3. how large is nafta the north american free trade agreement...

# Question: how large is nafta the north american free trade agreement...

###### Question details

How large is NAFTA?
The North American Free Trade Agreement (NAFTA) is a multilateral trade agreement
between Canada, Mexico, and the United States that came into eﬀect in 1994. Real GDP
for the United States–adjusted for exchange rates and diﬀerences in the cost of living–in
1994 was approximately $10.23 trillion. a) Data on nominal GDP and prices for Canada and Mexico in 1994 are provided in the following table. ---------------GDP----------exchange rate-----P/PUSA Canada --- C$1.10 trillion-----1.36 C$/$-----0.91
Mexico Mex$2.23 trillion-----3.38 Mex$/\$-----0.67

Calculate real GDP for the NAFTA area in 1994 (in trillions of U.S. dollars), adjusted
for exchange rates and diﬀerences in the cost of living.