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N.A.F.T.A - Assignment Example

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N.A.F.T.A. Table of Contents Introduction 3 Thesis Statement 3 A Brief History of NAFTA 3 The Purpose of NAFTA 4 Effects of NAFTA on US World Economy 5 Conclusion 6 Works Cited 7 Introduction The North American Free Trade Agreement (NAFTA) was founded in the year 1994…
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Download file to see previous pages Moreover, the policies also focused upon codifying broad assortment of agreements related to textile, agriculture, telecommunications, auto trade, intellectual properties, flexibility of workers and environmental policies (Ford, “A brief history of NAFTA”). Thesis Statement The discussion would aim to analyze the purpose of NAFTA. It would also attempt to provide an insight into the history of NAFTA along with ascertaining the favorable as well as unfavorable outcomes on the US and world economy. A Brief History of NAFTA NAFTA was established in the year 1994 for the purpose of trimming down the costs related to trading, raising business funds and most significantly promoting financial growth among Mexico, Canada and the US. The agreement i.e. NAFTA which was duly signed by the different leaders of the participating nations was ratified by the Congress of the US in the year 1993. It was observed that the agreement proved to be quite controversial as most of the manufacturing industries as well as the makers of agricultural commodities belonging to the US faced the threat of losing the business market by competing with the Canadian along with Mexican business firms due to their lower cost arrangements (Ford, “A brief history of NAFTA”). ...
Additionally, the fundamental purpose of NAFTA is to ensure and maintain a smooth flow of goods as well as services by making substantial investments. Moreover, the agreement aimed to provide each of the participating countries the prominence in terms of substantial favored trade in the business market. With regard to the purpose of NAFTA, it has been observed that the agreement encompassed certain important areas which comprised the abolition of non-tariff associated trade barriers, augmentation of financial investments and reduction of environmental issues. Moreover, the agreement also entailed segments such as trimming down the tariffs and developing the trade rules such as dispute settlement methods. However, on the basis of the above discussion, it can be stated that the chief aim of NAFTA is to generate a situation of free trade amid the nations of Mexico, Canada and the US by the exclusion of tariffs along with other trade barriers. The agreement i.e. NAFTA can be considered as a major initiative owing to the different imperative purposes of the trade policies (Rosson, Benson, Moulton and Sanders, “The North American Free trade Agreement and U.S. Agriculture”). Effects of NAFTA on US World Economy NAFTA was found to pose significant effects upon the world economy of the US. Due to the implementation of NAFTA, the trade relations between the nations i.e. Mexico, Canada and the US broadened substantially. It becomes necessary to be stated in this context that the supporters of NAFTA declared the agreement to be a successful one for supporting the producers of the US by generating a free trade amid the participating nations. Moreover, the agreement benefited the ...Download file to see next pagesRead More
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