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Trading Blocs NAFTA Case Study Essay Example

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Trading Blocs NAFTA Case Study

Trading Blocs NAFTA Case Study. Goods exports to NAFTA in 2010 were $411.5 billion, up 23.4% ($78 billion) from 2009, and 149% from 1994 and up 190% from 1993. exports to NAFTA accounted for 32.2% of overall U. exports in 2010 above statistics clearly suggest the importance of NAFTA in enhancing trade activities between America, Canada and Mexico. Trade between the United States and its NAFTA partners increased a lot after the formulation of NAFTA. In the absence of such an agreement, America would have engaged in trade agreements with other countries in Asia or Europe. Such a scenario would not help North American region very much. In short, formation of NAFTA is definitely helping the integration of North American region.“NAFTA made it possible for many U.

manufacturers to move jobs to lower-cost Mexico. The manufacturers that remained lowered wages to compete in those industries”(Amadeo, 2012). Movement of jobs from US to Mexico will definitely create problems in America. America is already struggling to find enough job opportunities to its citizens. Manpower costs in America is extremely higher than that in Mexico which encourages American companies to get their work done from Mexico easily by exploiting the norms of NAFTA. Mexico is benefitted immensely because of its ability to attract American organizations in utilizing their manpower.“The second disadvantage was that many of Mexico's farmers were put out of business by U.-subsidized farm products. NAFTA provisions for Mexican labor and environmental protection were not strong enough to prevent those workers from being exploited” (Amadeo, 2012). Although Mexicans are benefitted from the movement of jobs from America to their country, they are facing immense problems because of the intrusions of American agricultural products in their territory. Mexican farmers are not getting enough prices to their agricultural products because of the intrusion of the cheap agricultural products from America. . Trading Blocs NAFTA Case Study.

References

Amadeo, K. (2012). Disadvantages of NAFTA. Retrieved from

http://useconomy.about.com/od/tradepolicy/p/NAFTA_Problems.htm

Fredman, J. (2012). The Disadvantages of the NAFTA Agreement. Retrieved from

http://www.ehow.com/info_7743678_disadvantages-nafta-agreement.html

Mexico after 10 years of NAFTA: The price of going to market (n.d). Retrieved from

http://www.google.co.in/url?sa=t&rct=j&q=disadvantages%20of%20nafta&source=web&cd=9&sqi=2&ved=0CG4QFjAI&url=http%3A%2F%2Fwww.twnside.org.sg%2Ftitle2%2Fresurgence%2F182-183%2FCover06.doc&ei=nMBJT6uNOYfZrQeR5_SfDw&usg=AFQjCNEV8kDGri0E3FiMq2AGc69cSIFkrw

North American Free Trade Agreement (NAFTA). (2011), Retrieved from

http://www.fas.usda.gov/itp/policy/nafta/nafta.asp

Office of the United States Trade Representative. (2008). North American Free Trade Agreement

(NAFTA). Retrieved from http://www.ustr.gov/trade-agreements/free-trade-agreements/north-american-free-trade-agreement-nafta

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preview essay on Trading Blocs NAFTA Case Study
  • Pages: 4 (1000 words)
  • Document Type: Case Study
  • Subject: Business
  • Level: High School
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