Advantages And Disadvantages Of NAFTA

1161 Words3 Pages
bulb-icon

Recommended: Nafta Economic Impact Essay

NAFTA or the North American Free Trade Agreement was an agreement signed by the United States, Mexico and Canada. The agreement created various trilateral rules which would determine the course of trading activities in the region and the benefits that would emerge as a result of the trade. There are various aspects that are characteristic to the agreement reached by these three nations depending on the variables that are characteristic of the individual nations. The agreement has helped the three nations develop rapidly by eliminating various factors that limit aspects like trade and development. NAFTA has had a significant impact on the relations and interactions between these three countries, and has helped the countries change their status …show more content…

According to different studies, the advantages that are seen in the agreement that has various parameters regarding how these trading activities will be conducted, have promoted an increase in the market size and revenue in different states that participate in the agreement. This means that aspect like the elimination of tariffs between the countries that fall under the trading region has opened new pathways for sustainable economic growth in the region. The effects are visible in all the countries since there are several benefits associated with being part of this trading community. The three markets have been affected by the agreement significantly (Graham, 2016). The American economy has continued to grow since there is an increase in the level of investment in different sectors including the footwear industry. Other markets like the Mexican and Canadian market have seen significant increases in external investment due to the nature of competition arising from different players in the market. This means that all the three markets have grown and continue to grow while offering other advantages like creation of employment and the opening of other franchises as a result of the …show more content…

The citizens of these nations can seek employment in any of the three countries through the legislations that have been approved by the participating countries (United States International Trade Commission, 2001). This means that there is an eradication of unemployment hence reducing the negative vices that have been associated with unemployment like increased crime rates. The environment for works in these countries has also been standardized hence attracting different people from the countries who have diverse professional and non-professional

Show More
Related

  • Understanding International Trade: Costs, Benefits, and Agreements

    715 Words  | 2 Pages

    Trade is the most common form of transferring ownership of a product. The concepts are very simple, I give you something (a good or service) and you give me something (a good or service) in return, everyone is happy. However, trade is not limited to two individuals. There are trades that happen outside national borders and we refer to that as international trading. Before a country does international trading, they do research to understand the opportunity costs and marginal costs of their production versus another countries production. Doing this we can increase profit, decrease costs and improve overall trade efficiency. Currently, there are negotiations going on between 11 countries about making a trade agreement called the Trans-Pacific

    Read More

  • Zapatista Movement in Mexcio

    1284 Words  | 3 Pages

    "North American Free Trade Agreement (NAFTA)." Encyclopædia Britannica. Encyclopædia Britannica Online. Encyclopædia Britannica Inc., 2011. Web. 23 Nov. 2011. .

    Read More

  • U.S-Mexico Borderlands

    1084 Words  | 3 Pages

    After three years of debate NAFTA was established in 1994. Fears concerning NAFTA included job creation, loss and transfer, wages and infrastructure. (Ganster/Lorey 188-189) However, with the implementation of NAFTA the economy grew. Ganster and Lorey reveal that bilateral trade increased by $211.4 per year from 1989 to 2004. Commerce grew by 20 percent in the first six months of 1994. There were advantages and disadvantages of NAFTA, nevertheless, NAFTA “intensified the integration of the two economies rather than distancing them.” (Ganster/Lorey 190)

    Read More

  • The Pros And Cons Of NAFTA

    1027 Words  | 3 Pages

    On January 1st, 1994, a treaty that created the largest free trade area were signed into place by the trilateral of United States, Canada, and Mexico. NAFTA is a promise made by world’s most significant corporations claiming to create many high paying jobs and raise the standard of living in the US, Canada and Mexico. As we approach its 21st birthday, NAFTA now links 450 million people producing trillion dollars’ worth of goods and services each year. However, behind this seemingly good deal, it also created many underlying issues. Beginning with NAFTA giving corporation opportunities to move factories aboard to the lower-cost Mexico. Manufacturing aboard did not only outsourced American jobs, it also caused manufacturers that remained to lower

    Read More

  • NAFTA: The North American Free Trade Agreement

    1078 Words  | 3 Pages

    Throughout history, the United States has initiated policies, peace agreements, or laws which were believed to bring prosperity, and success, however those policies as a result were created in the U.S. best self-interest. One of these policies is known as NAFTA, which was a trade agreement created to open up free trade around the globe, however this policy backfired, deeply scaring and deteriorating the Latin American economy, and its people. Specifically, NAFTA known as the North American Free Trade Agreement, took effect on January 1, 1994 was a treaty which entered by the United States, Canada, and Mexico used to eliminate tariff barriers, in order to encourage economic prosperity between these three countries. A quarter century later, the

    Read More

  • Essay On NAFTA

    624 Words  | 2 Pages

    The goal of NAFTA was to systematically eliminate most tariff and non-tariff barriers to trade and investment between the countries. NAFTA has allowed U.S., Mexico, and Canada to import and export to other at a lower cost, which has increased the profit of goods and services annually. Because the increase in the trade marketplace, NAFTA reduces inflation, creates agreements on intern...

    Read More

  • The Failure of the North American Free Trade Agreement

    1348 Words  | 3 Pages

    In December of 1992, Presidents Salinas (Mexico), Bush (U.S.) and Prime Minister Brian Mulroney of Canada signed the North American Free Trade Agreement (NAFTA). The Mexican legislature ratified NAFTA in 1993 and the treaty went into effect on January 1, 1994, creating the largest free-trade zone in the world.

    Read More

  • NAFTA

    801 Words  | 2 Pages

    In 1994, the most controversial alliance between nations took its affect. NAFTA (North American Free Trade Agreement) was the agreement to have free trade between Canada, United States and Mexico. According to the Institute for International Economics one million workers in 1995 would owe their jobs to U.S. exports to Mexico. Some 175,000 of those would be new jobs in higher paying sectors (Mohn 2007). Although it was suppose to drastically increase trade and create jobs, in many ways had the reverse affect. The environment took a backseat to the corporate greed. With the increase of trade, the pollution increased and the quality of goods decreased significantly. Our country lost more jobs than it gained. We have become increasingly dependent on other countries. The United States has sat by silently as the pollution from unregulated foreign low-wage manufacturing plants infiltrates our earth's rivers, air, and ground water. Our government has turned their heads on workers in other countries as well as our own, being exploited and forced to work in conditions not fit for and animal. NAFTA may have increased trade but at what cost? It looks like even the United States can be bought. The U. S. Government no longer controls our country, big business does.

    Read More

  • Negative Effects Of NAFTA

    1300 Words  | 3 Pages

    The first source is demonstrating the effect of the NAFTA which stands for North American Free Trade Agreement. The NAFTA is a political agreement between Canada, USA and Mexico, and the purpose of this agreement is to improve trading relations by decreasing trade barriers, by removing tariffs. The first source shows an image of a political cartoon. In this image there is a man with a sad expression on his face in front of a US factory, with a sign on the building saying “Labor Day: This year’s picnic will be held in Mexico, where your job went”. What the source is demonstrating is one of the negative effects of the NAFTA, which is job loss for Americans. The source shows this through symbolism and labelling: The sad man represents American

    Read More

  • Globalization: The European Union, the ASEAN Group, and NAFTA

    3413 Words  | 7 Pages

    Globalization has become one of the most influential forces in the twentieth century. International integration of world views, products, trade and ideas has caused a variety of states to blur the lines of their borders and be open to an international perspective. The merger of the Europeans Union, the ASEAN group in the Pacific and NAFTA in North America is reflective of the notion of globalized trade. The North American Free Trade Agreement was the largest free trade zone in the world at its conception and set an example for the future of liberalized trade. The North American Free Trade Agreement is coming into it's twentieth anniversary on January 1st, 2014. 1 NAFTA not only sought to enhance the trade of goods and services across the borders of Canada, US and Mexico but it fostered shared interest in investment, transportation, communication, border relations, as well as environmental and labour issues. The North American Free Trade Agreement was groundbreaking because it included Mexico in the arrangement.2 Mexico was a much poorer, culturally different and protective country in comparison to the likes of Canada and the United States. Many members of the U.S Congress were against the agreement because they did not want to enter into an agreement with a country that had an authoritarian regime, human rights violations and a flawed electoral system.3 Both Canadians and Americans alike, feared that Mexico's lower wages and lax human rights laws would generate massive job losses in their respected economies. Issues of sovereignty came into play throughout discussions of the North American Free Trade Agreement in Canada. Many found issue with the fact that bureaucrats and politicians from alien countries would be making deci...

    Read More

  • Advantages And Disadvantages Of Nafta In Canada

    534 Words  | 2 Pages

    With trading through U.S and Mexico, Canada has been greatly growing the economy. Companies in Canada can import products which are cheaper and more reasonable to sell to Canadian consumers, so that they are able to make more money than they manufacture the products themselves. Moreover, NAFTA has created jobs. When people think about NAFTA has created a lot of jobs in variety industries, they always think that only people who are living in the country will get benefits of that. Nevertheless, it is not. Also, companies have a benefits of creating jobs by NAFTA because creating jobs means that a company has more opportunities to manufacture products by increased employees and

    Read More

  • Impact of Global Competition on Trade Unions

    1559 Words  | 4 Pages

    The development of free-market economics has, since the 18th century, resulted in the spread of a set of ideas, creeds and practices all over the developed and much of the developing world. Today, the globalisation of trade, capital, technology and innovation has accelerated competitive conditions for businesses all over the world. Globalisation may be defined as the opening of markets to the forces of neoliberalism and capitalism; it is characterised by the free movement of people, talent, skills, capital (intellectual, social and economic) across international borders. All kinds of barriers have either been swept away, diffused or made obsolete by the forces of globalisation: trade barriers, subsidies, geographical boundaries, linguistic and cultural differences. Technological advancements have pulled the world closer and, in the process, affected how labour relations and worker/employer relations operate and develop. The multinational corporation as well as the public sector alike are affected by global competition.

    Read More

  • Relationship Between China And Australia

    1644 Words  | 4 Pages

    Some famous and successful international trade agreements play an important role in the international environment, such as GATT (General Agreement on Tariffs and Trade) and NAFTA (North American Free Trade Agreement). These trade agreements boost the economic developments in those regions to various degrees. To strengthen cooperation between China and Australia, the governments of both countries try to make the trade

    Read More

  • Regional Trade Agreement

    2292 Words  | 5 Pages

    ...e USA and Canada is high and was not considered when the Agreement was made. This is the reason, many American citizens feel that there numerous illegal settlers in their country, trade deficits instead of over pluses and loss of lakhs of jobs, as before. The relations within this bloc are complex and tight; Canada and Mexico are controlled by the USA, declining their trade freedom. All this does not set up a solid base for businesses and trade.

    Read More

  • The Advantages and Disadvantages of Free Trade

    1549 Words  | 4 Pages

    Functionalism: The discord that interest in one reach, (for instance, trade) pushes coordinated effort in distinctive extents. In principle, the pills issue, movement issues, et cetera are all tended to fortnightly

    Read More

More about Advantages And Disadvantages Of NAFTA

Open Document