Economic Growth In Mexico And The USA

Decent Essays
Economic growth means a growth of the country’s income, which is connected to a nation’s output growth in a fixed period. The NAFTA has designed from a deal which is made by three countries, Canada, America and Mexico in prior decades. The vigorous growth of the inputs and outputs of the goods and services gave a promote action on these countries’ economy due to the free trade agreement. According to the details of the agreement, it is clearly close the relationships between a developing country and two developed countries. Because of this agreement, it creates a liquid circulation of trade and investment flows among the NAFTA members. In fact, to act as the largest single export market of the U.S.A, Canada sends ninety eight percent of its…show more content…
According to Blecker (2014), “In both Mexico and the United States, real wages have stagnated while productivity has continued to increase, leading to higher profit shares and a tendency toward greater inequality.” The Mexico economic market relies heavily on the trade with the America which is the production through the imports and exports. The Mexico’s economic market influenced from the competition between the China and the U.S.A. Since the America wants to keep the strength of the competition among the world, the American industries cut the costs through produce the sixpenny products to achieve that. The others chose to cut their labor costs, which contain the fees to keep their own benefits. Also, some of them chose to relocate their companies’ address to the other states in the U.S.A which have the lowest tax fees. The actions of downsizing the cost and reducing to pay the tax fees deeply hurt the economic market in the U.S.A. Indirectly, damaged the Canada and Mexico’s market cause the free trade agreement among them. Otherwise, the free trade agreement may have declined the tax fees between three countries, but this is surface area which covers the lack of real conditions. “Each of the three countries has a different procedure for NAFTA claims, and businesses that violate the laws or customs procedures of any country are subject to administrative, civil or criminal penalties,” according to Amy (2012) longitudinal
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