The United States And United Kingdom Affect Global Businesses

1603 WordsApr 24, 20177 Pages
Throughout the semester we have touched on a multitude of different issues in Global Business. From monetary systems and how they have changed over time, to how different regions of the world have produced diverse cultural preferences. Even after touching on as interesting topics as these, nothing has come close to the intrigue of Government and how they can affect business in many ways. The many different ways that government can intervene in a business, affect import/export numbers via taxation, and much more will be discussed in the following paragraphs. The underlying question that this paper will answer is, how do the actions of the United States and United Kingdom affect global businesses. The United States government is a…show more content…
The deal also “sought to protect intellectual property, establish dispute-resolution mechanisms, and, through side agreements, implement labor and environmental safeguards.” As one can clearly see here, this agreement helped not only these three nations out greatly on the economic end of the spectrum, but it also helped get employee and environmental safety standards to be consistent across the three nations. This trade agreement helped greatly improve economic disputes that these countries once faced before. NAFTA has affected the countries in different ways. The United States has come out alright, but many sceptics believe that the trade, overall, has had modest but positive impacts on the US GDP, and has added up to “$80 billion dollars to the US economy.” While the boost in GDP and increase in US economy was boosted a bit in this trade agreement, it has not been all positives for the nation. A lot of jobs in the United States have been lost due to companies opting to start up in Mexico because of cheaper labor costs. An example of how big this swing has been, and just how much it has affected the US can be seen when looking at the trade balance. “In 1993 the US-Mexico trade balance swung from a 1.7 billion dollar U.S. surplus in 1993 to a %54 billion dollar deficit by 2014.” So as one can see right there, while this trade deal may have added money into the economy, it has severely affected how businesses have taken a hit due to US
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