North American Free Trade Agreement (NAFTA) was a trade agreement reached between the United States, Canada and Mexico in 1994 to create a large free trading area between these countries. The main aim was to increase their competitiveness in the global market, reduce the cost of doing business by eliminating the trade barriers, increase the investments and provide a safer market for the goods and services produced in the region. The Chiapas revolt and the assassination of a presidential candidate was a blow to the regional trade agreement, the Chiapas of Mexico feared NAFTA would threaten their low technology agricultural economy by importing cheap grains from the U.S. And Canada. The subsequent result to the Mexican economy was failure to put a fixed exchange rate between the peso and the dollar at three pesos per dollar which could have saved the currency from devaluation during the crisis (Direct Selling Education Foundation, 1998). The fixed exchange rates are attractive for emerging economies such as Mexico for many reasons, pegging the exchange rate against a hard currency cushions the weaker economy from the risks that come with the uncertainty in the high exchange rate variability. For the emerging markets, fixed exchange rate attracts investments and...
It benefits the traders in the sense that the goods and services will not be subjected to price variability due to the exchange rate volatility which can affect their imports and exports in the foreign market.
Trade Agreements According to the Office of the United States Trade Representative website, which is part of the Executive Office of the President, the United States has trade agreements with a total of twenty countries. Those countries are Austarlia, Bahrain, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Israel, Jordan, Korea, Mexico, Morocco, Nicaragua, Oman, Panama, Peru and Singpore. Beyond that, there are also regional agreements such
North American Free Trade Agreement is one of the most important and influential international relationship formed between the U.S., Canada and Mexico, creating the largest free trade region in the world. The following pages analyze NAFTA's influence on member countries while focusing on the trade relationship between the U.S. And Mexico. The most important facts about U.S. -- Mexico trade are presented, with details on the imports, exports, and trade
North American Free Trade Agreement President Clinton signed the North American Free Trade Agreement Implementation Act-NAFTA on December 8th, 1993. Canada and Mexico soon followed suit and the North American Free Trade Agreement became active from January 1st 2004 and thus became the first comprehensive free trade agreement among major industrial nations and a developing a country. (A dynamic macroeconomic analysis of NAFTA - North American Free Trade Agreement -- Economic
The level of industrialization of the SEA countries also varies largely but this can be attributed to the difference in the size of the domestic market of each country or region and their overall level of development on the economic front. Singapore and Indonesia have benefitted largely from the creation of the ASEAN since these countries are the larger of the SEA countries. Malaysia has also benefitted as a
Americans who want to open businesses in Mexico's cities would be able to do so easily, which would stimulate Mexico's economy as well as America's. Mexicans who want to live and work in the United States could do so without risking their lives and leaving their families. Quality of life would vastly improve in Mexico, and the improved economy would mean less strain on health care and other social
Free Trade Agreements Are free trade agreements a good policy for nations? Given that there are 200 free trade agreements in place globally, there are clearly benefits, but what are the negatives? This paper explores the positives and negatives of free trade agreements, and this paper delves into the NAFTA pact between the U.S., Canada, and Mexico, for the upsides and downsides of that agreement. What are Free Trade Agreements and why
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now