Essay Pest Analysis on Nafta

2946 Words Dec 28th, 2010 12 Pages
Utilising a PEST framework, explore the ways in which your chosen regional organisation shapes the environment for business in that region.

NAFTA

Contents_____________________________________ Page
Executive summary....................................................................................... pg
Introduction..................................................................................................... pg
1.0 Aims and Objectives…………………………………………………………. pg
PEST analysis............................................................................................... pg
2.0 Political ……………....................................................................... pg
2.1 Economical
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The macro-environment in relation to the PEST factors has thoroughly been analysed.

1.0 Aims and Objectives
The aims of the following report are to analyse the North American Free Trade Area and conclude how NAFTA shapes the environment for business in North America. The objective is to submit a thorough report on NAFTA and conclude the effects NAFTA has on business in North America.
2.0 Political
The NAFTA project was “Spearheaded by President Ronald Reagan, enacted by President George H. W. Bush, and modified by President Bill Clinton.” (Williams, 2003).
The huge amount of foreign trade in North America has strengthened the political relationships across the borders with the three nations, on the negative side there are a number of political issues which have arisen since the launch of NAFTA, the main issues is the supposed exploitation of the Mexican worker; this exploitation has a positive impact on multinational businesses enticing them to `relocate there. This low cost labour force allows businesses to produce products at a lower cost than, its competitors if they are located in an MEDC country such as the UK or the US. This cost saving allows businesses to have a competitive advantage over others in the same market and at the same time helping the North America economy with the employment of labour forces.
“Thousands of foreign companies have established new

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