Eu and Nafta

3107 Words Apr 11th, 2013 13 Pages
Global business environment Individual coursework
Nowadays, Regional integration by establishing trading bloc seems to be inevitable for most of countries because limited resources like oil and financial capital encouraged them to establish such a trading bloc like NAFTA. Among several trading bloc, European Union evolved more integrated politically and economically over last sixty years. Furthermore, European union have their own flag, parliament, council and commission. Every trading bloc must have their own characteristics in terms of politics and economics. What is similarities and differences between EU and other trading bloc? what kind of positive and negative influences has come to EU members and NAFTA
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The politician of European parliament is elected by each citizens of European union. It cannot be imaginable in NAFTA member 's countries. According to the level of integrated economic level, EU is situated at the relationship between economic union and political union because they have common currency and European parliament with high level of economic, political integration to make their one policy. On the other hand, NAFTA members allowed only free flow of trade, and also the tariff and trade barrier to other countries are different from country to country.

Until now, by the level of economic integration the difference of trading bloc between NAFTA and EU is compared, secondly, the different background, histories will be compared and contrasted between NAFTA and EU. United States of America, Mexico and Canada built the trading bloc which is known as North American Free Trade agreement and removed the trade barrier and tariff between in order to accelerate their economy. Three governments aimed to utilize each countries competitive advantage like labor from Mexico, natural resources from Canada and financial resources and technologies from USA. In brief, the agreement include market access for goods, protection for foreign direct investment, protection for intellectual property, rules of origin and commitment to the

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