Originally Posted By: Bladecutter
I'm not really sure what's worse:
That the Camry is the best car we make in this country, or that the fact that people think it's a good car in comparison to vehicles that are much more enjoyable to drive.
BC.
That's why you need to own both.
On the other topic, I understand the difference between MFN status and NAFTA.
Anytime you equate markets for labor based on the free flow of goods, you equalize the cost of inputs, especially in this case labor, across those markets.
When you compare the Canadian market vs. the US, there is no real effect.
When you equate the Mexican labor market with Canada and the US, wages in the US and Canada will necessarily fall while pay in Mexico will climb.
Other inputs into the "product", like uneven environmental regulatory, cheaper raw materials, etc. will also affect the other more elastic components of product cost.