What is the difference between a comparative static model and a general equilibrium model? Are there any similarities between the two models? Explain. B) Canada and the European Union (EU) concluded negotiations on the Comprehensive Economic Trade Agreement (CETA) earlier this year. This is the biggest trade deal for Canada since the ratification of the NAFTA in 1994. CETA will eliminate over 95% of the tariffs between Canada and the EU. Which trade model would you use to evaluate the economic impact of the trade agreement on Canada and the EU? Explain why you selected the model, using examples from both Canada and the EU. What are some shortcomings of the model you have chosen? C) What would be your recommendations regarding Canada’s strategy as the NAFTA is renegotiated? What do you think should be high priorities for Canada’s trade negotiations with the US? What type of research would you need to undertake before making recommendations and what types of sources would you consult?
a: What is the difference between a comparative static model and a general equilibrium model? Are there any similarities between the two models? Explain. The second question would be: Which trade model would you use to evaluate the economic impact of the trade agreement on Canada and the EU? Explain why you selected the model, using examples from both Canada and the EU. What are some shortcomings of the model you have chosen?