CONTENT:
North American Free Trade Agreement (NAFTA) Name Course number Instructor`s name Date Table of Contents Title page…………………………………………………………………………………….i Table of contents…………………………………………………………………………….1 Abstract……………………………………………………………………………………...2 Introduction………………….………………………………………………………………3 Background of NAFTA………………………………………………………… …………..3 The international business perspective of NAFTA………………………………………….4 NAFTA`s impact in North America and the rest of the world...………………… …………5 Conclusion……………………………………………......………………………………….9 References……………………………………………......………………………………….10 Abstract The North America Free Trade Agreement aimed to increase free movement of goods and services across the boundaries and facilitate economic growth. The three countries have become some of the most open to trade in the world, and this has resulted in increased foreign direct investment among them. It has also laid the framework for free trade with other countries such as the large economies of the European Union and Asia. NAFTA has resulted in increased growth among the three countries indicated by the increased trilateral trade flow. There have been some pitfalls such as loss of jobs in the US and Mexico due to the restrictions on the food sector. Canada has also faced problems such as weak production and innovation and restrictions on oil export. However, as countries continue seeking integration agreements NAFTA members can adopt a strategic position to remain competitive through enhanced partnership particularly in the manufacturing industry. Introduction The North America Free Trade Agreement (NAFTA) was signed between the United States, Canada and Mexico in January 1994. Prior to NAFTA, the US and Canada had the US-Canada Free Trade Agreement (CFTA). NAFTA has been said to be flawed as it is pro-corporate and it ignores the suffering of ordinary citizens in Mexico particularly those dependent on agribusiness. It has not accomplished its targeted objectives of bridging the income gap between Mexico and the two developed countries trading partners. There is need for greater integration to particularly in the manufacturing industry for the three to remain competitive in the global market against competitors in Europe and Asia. Background of NAFTA NAFTA is a cooperative economic intergovernmental organization created with the intention of promoting the free flow of goods across the three nations. It eliminates trade barriers to facilitate cross border trad...