What does the trade deal (CAFTA) affect to Costa Rica's economic development?
You guys give 3 reasons why this trade deal affects positively its economy
Thanks a lot
1) It gives opportunity to benefit both sides from comparative advantage.
2) It gives opportunity to benefit both sides from absolute advantage.
3) It allows to enjoy wider diversity of products,
4) It removes some trade barriers





The Central American Free Trade Agreement (CAFTA), which was negotiated between the US as well as five Central American countries (Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua) and the Dominican Republic in 2006, passed by only two votes,
Even within Central America, more stable and secure countries like Costa Rica, Panama, and the Dominican Republic have higher youth unemployment. While unemployment per se is not alarming, the quality of unemployment and high poverty are factors that