In contrast, Canada saw no rise in trade penetration in the immediate aftermath of CUSFTA in 1988 (indeed, trade penetration was in a downtrend) but then saw a rapid rise in trade penetration from 1991–2000.
As individual firms take advantage of ICT in managing their output, economic activity at the macro level may see less fluctuation. At the same time, greater flexibility in products and labor markets may help firms adapt smoothly to changing business conditions. Obviously, factors other than structural changes have also lowered inflation and volatility of inflation and growth.