Advantages And Disadvantages Of NAFTA

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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

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