If the united states decides to trade with mexico we know that
If a country has the comparative advantage in producing a product, then that country must also have the absolute advantage in producing that product. Opportunity cost refers to how many inputs a producer requires to produce a good. Differences in opportunity cost allow for gains from trade. The United States has a services trade surplus of an estimated $8.0 billion with Mexico in 2018, up 13.3% from 2017. Investment U.S. foreign direct investment (FDI) in Mexico (stock) was $114.9 billion in 2018, a 4.7% increase from 2017. But before we applaud the completion of any deal, what matters most is in the details. From what we know at the moment, those details suggest that NAFTA may have been made worse, not better.