North American Free Trade Agreement (Nafta)

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North American Free Trade Agreement (NAFTA) I. Brief overview of NAFTA (mainly for in-class presentation) a. NAFTA Introduction b. Original Expectations II. NAFTA over the last 12 years a. Impact on the U.S. economy i. Jobs (Employment Growth) ii. Labor iii. Income iv. Imports vs. Exports (Trade Deficit) 1. Agriculture v. Economic growth b. Impact on Canadian economy c. Impact on Mexican economy d. Global Impact i. International Business ii. FDI (Foreign Direct Investment) III. NAFTA - The Good, the bad and the ugly a. Successes b. Short Comings i. Lessons Learned c. Broken Promises IV. NAFTA’s role going forward a. What needs to be fixed? i. Current Issues and Challenges b. How do you fix it? i.…show more content…
c. Impact on Mexican Economy In the beginning, Mexico had hoped to gain from the agreement by a growth in the national output, falling unemployment rates, and increasing trade with the U.S. The NAFTA has, perhaps, benefited Mexico the most out of all the other two countries. This can perhaps be best reflected in the rapid growth of the Mexican maquiladora industry. “A maquiladora is a labor-intensive organization that imports inputs, often from the United States, and then processes and exports them. Because maquiladoras often link the border economies of U.S. and Mexican cities, these plants have been some of the major beneficiaries of NAFTA. In 1993, Maquiladoras numbered only 2,143. Just six years later, the number of maquiladoras had increased 73% to 3,703” (Fugate 2005). This shows that NAFTA has positively affected the Mexican economy, more than it has any other country. III. NAFTA: The Good, the Bad, and the Ugly: As mentioned earlier, NAFTA has remained controversial, even before its birth. The main argument that many politicians have given against NAFTA is that they fear it would turn countries such as Canada into permanent branch plant economies. The farmers in Mexico have been opposing NAFTA because they believe that all the subsidies that the US farmers get from their government undermines the Mexican agricultural prices, which in turn is forcing many of the Mexican farmers out of business. Many sectors in
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