1. Three main causes of 2008 financial crisis. A huge portion of the increased mortgage loan defaults are what are referred to as sub-prime loans. Most of the sub-prime loans have been made to borrowers with poor credit ratings. This caused massive losses in mortgage backed securities and many banks and investment firms began bleeding money. Housing bubble, with its easy money policie, the Federal Reserve allowed housing prices to rise to unsustainable levels. Global imbalance, global financial glows had been unsustainable. U.S. borrowing cannot continue indefinitely, it caused the stress on the financial disruptions.

2. Main effect of NAFTA It eliminates all tariffs between the three countries, it reduces inflation by decreasing the cost of imports. NAFTA creates agreement on international rights for business investors, it reduces the cost of trade and spur the growth of businesses. NAFTA creates positive effects on labor market, it creats more jobs and led to more higher-paying jobs for Americans.

3. Benefits of outsourcing: The most obvious benefit it save costs for companies, you can hire employees with lower wages and better quality. The outsourced vendors are experts in this filed, the tasks can be completed faster with better output. Companies can concentrate on core area, it gives organizations more tim to strengthen their core business process.

4. investment theory of politicsBusinesses invest in candidates and political parties, they expect a return on their investment, the politics will support to a business interest. The investment theory of politics represents current political ecnonmy, politics will be the shadow cost on society by big business. Theier is a connection between big businesses and politics.

5. Makert solutions to externality and limit.Market solutions try to manipulate market forces to reduce the externality, by exloiting the price mechanism. Provery rights can provide an efficient solution to the problem of externalities. A party will have bargaining power to lead to an agreement that externalities are taken into account. Another market solution is follow the establishment of a liability rule to serve as a starting point for negotiations.