We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Impact of NAFTA on the US economy - Term Paper Example

Comments (0) Cite this document
NAFTA’s Impact of United States Economy Your complete name Institutional affiliation Submission date Abstract NAFTA is North American Free Trade Agreement which provides investors with a remarkable set of terms and conditions in order to stimulate direct foreign investment from United States to Canada and Mexico…
Download full paper
Impact of NAFTA on the US economy
Read TextPreview

Extract of sample
Impact of NAFTA on the US economy

Download file to see previous pages... economy over a period of time with respect to U.S. trade balance, employments, jobs, and wages. NAFTA and its impact of United States Economy According to Teslik (2009) NAFTA, implemented in January 1994, and signed by Democratic President Bill Clinton, is a trilateral free trade deal between United States, Canada, and Mexico. The primary objective of the agreement is to eliminate several tariffs on products traded among the United States, Mexico, and Canada. Terms of the agreement were aimed to eliminate these tariffs in a gradual manner. The agreement was not fully implemented before 1 January, 2008. The deal phased out export tariffs in several industries, in particular, agriculture, and reduced taxes on textiles and automobiles. NAFTA implemented intellectual property protection, instituted a dispute regulation system, and established regional labor and environmental safeguard. However there is some criticism and lobbying when it comes to establishing regional labor and environmental safeguards (What is NATA? para. 2). NAFTA’s impact on trade Since NAFTA’s implementation, trade relation between United States, Mexico, and Canada have diversified substantially. However, there is expert’s disagreement on the extent of such expansion which is directly associated with NAFTA (Teslik, 2009, para.6).According to the data from the office of the U.S. Trade Representative (USTR) as Teslik (2009) states: The United States chief negotiator in foreign trade and major booster of NAFTA and other free trade accords, the overall value of intra-North American trade has more than tripled since the agreement inception. The USTR adds that regional business investment in the United States rose 117 percent between 1993 and 2007, as compared to a 45 percent rise in the fourteen years prior period. Trade with NAFTA partners now accounts for more than 80 percent of Canadian and Mexican trade, and more than a third of U.S. trade. (para.6) Trade deficit and unemployment NAFTA’s impact on U.S. economy has been subjected to the “boom-and-bust” cycle that directed domestic consumption, investment, and speculation in the mid- and late 1990s.Between 1994 and 2000, there was rapid increase in employments in the United States which caused substantial decrease in an overall unemployment rate. However, unemployment rise in 2001 resulted in the loss of 2.4 million jobs in domestic economy during March 2001 and October 2003(Bureau of Labor Statistics, 2003 as cited in Scott, 2003, p.3).The primary sector of these job losses was manufacturing which underwent a total decline of 2.4 million jobs since early 2001.With the dried job growth in the economy, other underlying issues stemming from U.S. trade deficit became more evident, particularly in manufacturing sector (Scott, 2003, p.3). After three decades of steadily growing global trade deficit, United States experienced rapid increase in these deficit after the implementation of NAFTA in1996.In 2002,foreign exports constitute 11.6 percent of total U.S. exports to Mexico and Canada(Scott,2003,p.3).Though, U.S. domestic exports to NAFTA partners experienced a dramatic increase(95.2 percent to Mexico, and 41 percent to Canada), increase in imports of 195.3 percent from Mexico and 61.1 percent from Canada exceeds the exports growth overwhelmingly(EPI analysis of BSL and Census Bureau as cited in Scott,2003,p.3).As a result,$30 billion U.S. net export deficit with Mexico and Canada increased by 281 percent ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Impact of NAFTA on the US economy Term Paper Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1425371-impact-of-nafta-on-the-us-economy
(Impact of NAFTA on the US Economy Term Paper Example | Topics and Well Written Essays - 1000 Words)
“Impact of NAFTA on the US Economy Term Paper Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/macro-microeconomics/1425371-impact-of-nafta-on-the-us-economy.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Unemployment in US economy
Moreover, unemployment comes into being if an individual goes in search of a new employment after being out of labor force for a long time. The individuals in search of employment get employed in monthly duration in a range of 10% to 40%. The unemployment varies directly with separation rate and varies indirectly with the rate of searching for a job.
3 Pages(750 words)Term Paper
Impact the German state on Europe economy
This will factor in the different economic aspects of any economy which include the political institutions, social organization and the overall economic policies or the overriding political ideology. It has even established and agreed over a common currency which is the euro. 
9 Pages(2250 words)Term Paper
The Impact of Small Business in our National Economy
All the research material discusses small business, its impact on national economy over a period of time, and what needs to be done to enhance the positive impact. During research, it is realized that better government policies and further investment can work wonders for small business and consequently, for U.S.
8 Pages(2000 words)Term Paper
Impact of the Housing Market on the US GDP
Macro economics consists of concepts that can be applied to the entire world. In economics a financial market is a place which allow buying and selling activities, there are many manufacturers and consumers available in the market. There are many products available of same type hence that raises competition in the market.
8 Pages(2000 words)Term Paper
World Finacial Crisis - Impact in the American Economy
World Financial Crisis - Impact in the American Economy. The main cause of the financial crisis of 2007-09 was the housing market of U.S. From the decade of 1990s policy of financial deregulation was taken by the U.S. government. The monetary policy became loose in 2002-2005.
7 Pages(1750 words)Term Paper
The detrimental impact that the 911 Terrorist Attack had on the NYC/US Economy
Due to such detrimental attack of terrorism which occurred on 9/11 in the World Trade Center in US, the impacts of terrorism have received increasing attention for review of the literature on the impacts of terrorism. The activities of terrorism being aimed at the destruction of the cities and derailing the livelihood of the people of the country affect the economic activities by damaging its fundamentals and deep roots in the national structure.
24 Pages(6000 words)Term Paper
The North American Free Trade Agreement is commonly known as NAFTA and it is an agreement to promote trade amongst the countries of America, Canada and Mexico. The agreement was signed into effect on the first of January in 1994 and has
3 Pages(750 words)Essay
Open economy
The reality, however, of these economic practices are worth examining in detail in terms of assessing whether, as advertised,
6 Pages(1500 words)Term Paper
Globalization of one place
Literally, the term globalization signifies the rapid development and broadening of the interconnectedness among the worldwide nations, influencing the cultural, political, financial and
7 Pages(1750 words)Term Paper
State of current US Economy
of the United States in the first quarter of 2014 was 4.6%.1 This growth is a clear indication that the economy is building gradually more so after the dismal performance in the first quarter that stood at 2.1%. This dramatic rise in the growth is more than twice the economic
4 Pages(1000 words)Term Paper
Let us find you another Term Paper on topic Impact of NAFTA on the US economy for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us