03 May FOR ESSAYS GURU ONLY 12
Respond to this post 200 words:
For this week’s discussion I went with the second question. Before I could answer the question though I read the chapters for the week and a few other websites to get a little more educated. NAFTA in a nut shell was a trade agreement formulated in the mid 90’s that focused on Canada, Mexico and the United States. The goal was to create trade that helped each country by imposing less tariffs on trade, which would encourage more trade. The focus areas of the agreement was automobile manufacturing, textiles and agriculture. One of the other goals was to help Mexico develop which in turn would help both the United States and Canada. As for the landscape and infrastructure change since NATFA there have been winners and losers in this area. I believe that Mexico became a big winner with this trade agreement. When it first started they were a country that was developing but not at the pace or scale of the United States and Canada. With the agreement in place the United States and Canada started shifting production and manufacturing to Mexico. Mexico offered a cheaper production location, cheaper workers and a way to increase profit for company’s North of Mexico. So this in turn helped Mexico build more infrastructure to handle the production, demand and transport of goods as the United States and Canada pushed business south. What that means for the United States and Canada is the fact that they aren’t putting the cost of that infrastructure into their own countries. They are taking away from the capabilities and growth within their country. Doing all this infrastructure change had an effect on the employment. When the Northern countries pushed work and production into Mexico they created job deficits within their own countries. Since the work was no longer there, unemployment rates grew and the number of skilled labors decreased as they were forced to look for other work. Mexico on the flip side gain jobs paid for by the Northern countries and they’re want for cheaper production. The more I dig into the subject though, I believe there are many different layers that could be examined. In the end I think the trade agreement was probably produced with good intentions but they probably weren’t monitored enough or adjusted as times changed. References: Floyd, D. (2018) NAFTA’s Winners And Losers. Retrieved From: https://www.investopedia.com/articles/economics/08/north-american-free-trade-agreement.asp Hill, C., Hult, G. (2017) International Business: Competing In The Global Marketplace, 11th Ed. New York, N.Y. McGraw-Hill Education McBride, J., Sergie, M. (2017) NAFTA’s Economic Impact. Retrieved Form: https://www.cfr.org/backgrounder/naftas-economic-impact
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