Mgt 448 Week 2 Paper

688 Words3 Pages
Trading Bloc NAFTA Advantages Integration and agreements made will reduce tariffs barriers that are associated with trades of goods, services and the factors of produced goods between countries (Hill, 2004). As this paper will demonstrate a proper analysis of how integration will promote global advantages in business, and will deliberate the disadvantages and advantages of integration. Therefore touching basis of contrast and comparing the development of economic stages within a region and the effect on the process of development of business globally. (NAFTA) North American Free Trade Agreement will be discussed between neighboring countries. Canada and the…show more content…
One or more nations may benefit from the move, but other nations may suffer as a result. National sovereignty is also a major concern for most nations considering integration. Concerns about national sovereignty arise because close economic integration demands that countries give up some degree of their control over certain policy issues, such as monetary, trade, and fiscal policies (Hill, 2004). Another disadvantage that may plague the country from free trade is the higher cost domestic production is replaced by a less costly and more efficient operating facility, also this will bring a change in the supplier as well, as the lower priced vendors (external) will be replaced by higher marked suppliers. The U.S is a highly developed with a superior developed infra structure, productivity ranking, and backed with an abundance of natural resources. The U.S. trading partner Canada is adverse and developed economically and also relies on the natural resources it possesses. The Rankings for the U.S is in the upper echelon and Canada is in the bottom tier last in the G8 (group of 8). GDP median for Canada a little over 29,000 and for America is well over the 36,000 mark resulting in the rankings as they are. In closing to this analysis of how NAFTA can affect both positively and negatively, it is for the countries that abide this agreement to remain vigilant in what is needed to maintain and uphold their

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