Free Trade And Lower Cost

Decent Essays

As we know trading blocks are breaking down into several different union, and different countries gather up in order to make trade intensely with each other. But that is just a brief definition, because the intense trades could as reflect no more than variable in comparative advantage. According to, “ What mainly matters is that each of these agreements allows trade between the participating countries to take place more easily and at lower cost.”(Economic theory and policy for trading blocks, 1994).
Free trade and lower cost, these are one of the most important reasons to form a trading block, for example, Free Trade Area, Customs union, Economic Union, political union, those are types of trading block that we know. One of the most …show more content…

The last one is NAFTA(North America Free Trade Agreement), which only includes three countries, USA, Canada and Mexico. This trade block’s agreement was sign on 1 Jan. 1994. The main goal is to create a free trade area for these countries, and eliminate trade barriers and increase investment opportunities, and protect intellectual property rights. According to CIA factbook, the population in over 474 millions and GDP is $20.083 trillion.(The CIA Factbook, 2014). Mexico will the be country in this term paper.

Social responsibility and ethical issues with Mexico

“Great leaders do not adopt a purpose to increase their profitability. They believe deeply in the purpose and the profitability follows” (Spence, pg. 296). In order to make a business man success in his career, understanding and solving social responsibility and ethical issues are one of the most important class he have to pass. When people talk about Mexico, the things that always come out of our mind is drugs, crimes and violence. But besides those negative factors, what else people will see, that will be large populations, cheap labor and lower cost in all different perspectives. To accomplish anything, we all have to take a risk on it. So a successful business will focus on getting the positive factors and avoiding the negative factors. “great leaders do not adopt a purpose to increase

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