Nobody downloaded yet

Has NAFTA proven beneficial to the American economy Explain - Essay Example

Comments (0) Cite this document
Summary
It is an agreement between three countries namely United States, Mexico and Canada. NAFTA came in force on January 1, 1994 and its main objective was to enhance free trade between these three countries. As a…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98% of users find it useful
Has NAFTA proven beneficial to the American economy Explain
Read TextPreview

Extract of sample "Has NAFTA proven beneficial to the American economy Explain"

Download file to see previous pages United States also made certain alteration in their international trade strategies. As because of NAFTA, Mexico’s export increased to a significant amount and Canada became huge market for America. It has been claimed that NAFTA has been a success for all the member countries, but reality is little different. It is true that there are certain significant economic improvements that have taken place due to NAFTA, but that is one side of the coin as also there are certain major disadvantages of NAFTA which include job losses, problems regarding environment, declining standards of safety and health etc.
NAFTA’s major objective was to remove the trade barriers and increase free trade between its member countries. NAFTA, although, has improved the export growth of its member countries, but at the same time it has resulted into many critical economic as well as environmental problems for its member countries.
Among various disadvantages of NAFTA, most important one is the loss of jobs in United States. Manufacturers in United States, because of NAFTA, got the freedom of outsourcing or moving jobs to Mexico. Mexican labors are available at a cost which is much lower than that of American labor. As a result of this manufacturers shifted their production unit to Mexico, and rules in NAFTA allowed them to do so legally. This resulted huge job losses in manufacturing industry in US. Manufacturers, who continued their operation in US, reduced the salary of US workers. Almost 879,280 jobs were lost in US during the time period of 1994 to 2002. There was actually significant increase in job creation from 1994 to 2000. But from 2001 unemployment started to increase and by October, 2003 almost 2.4 millions people lost their job. Apart from manufacturing industry, other industries which moved to Mexico include textiles, electrical appliances, computer etc. States which were badly affected include Texas, California, Michigan and New York. Apart form these job ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Has NAFTA proven beneficial to the American economy Explain Essay”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1557746-has-nafta-proven-beneficial-to-the-american-economy-explain
(Has NAFTA Proven Beneficial to the American Economy Explain Essay)
https://studentshare.org/miscellaneous/1557746-has-nafta-proven-beneficial-to-the-american-economy-explain.
“Has NAFTA Proven Beneficial to the American Economy Explain Essay”, n.d. https://studentshare.org/miscellaneous/1557746-has-nafta-proven-beneficial-to-the-american-economy-explain.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Has NAFTA proven beneficial to the American economy Explain

Impact of NAFTA on the US economy

...? NAFTA’s Impact of United s Economy Your al affiliation 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. Since its inception in 1994, the agreement has been appreciated for the benefits U.S. economy reaped through it and criticized for the negative impacts it might have had on U.S. economy. This paper discusses some of the negative and positive impacts of NAFTA on U.S. economy over a period of time with respect to U.S. trade balance,...
4 Pages(1000 words)Term Paper

North American Free Trade Agreement (NAFTA)

..., there was hope through the introduction and implementation of NAFTA that employees’ working conditions were likely to improve. In answering the question of whether the concerns materialized, we must admit that since the institution of North American Free Trade Agreement, the rise in the U.S. trade deficit with Canada and Mexico has really caused displacement of production. Various jobs that have been lost were particularly high-wage positions in the huge modern industries. The loss of these jobs accounts for NAFTA’s impact on the economy of the United States. On one hand, NAFTA has also caused income inequality to...
8 Pages(2000 words)Essay

American economy

...The Triumphs and Pains of Creating a National Economy The Federalist Era began in 1789 with George Washington as the first president of the United States and John Adams as his vice president. They had with them the Articles of Confederation, the first governing document with which to preside over the country. Although it allowed for several possibilities making war, negotiating diplomatic agreements, resolving issues regarding western territories, printing and borrowing money inside and outside the US, 1 it was unable to address the more serious challenges lacked taxing authority, and state and federal governments were unable to deal with all the issues at hand. It was time for national leaders to frame what would be known... to expand...
3 Pages(750 words)Essay

American Economy

...How often do we see superpowers and other developed economies put pressure on weaker countries to comply with what they think is right. They do not give any thought or consideration to the fact whether what they think is right in their culture may not be so worthwhile in other culture. As different cultures have different ideology and have different customs and traditions therefore it is not very appropriate to impose different injunctions upon these cultures thinking that what they think is right is also right others. There is no such thing as universal right; therefore we are going to determine whether such adopted behavior by the USA and other developed economies is right or wrong. There are various...
2 Pages(500 words)Term Paper

NAFTA Opposing View

...PART ONE The North America Free Trade Agreement (NAFTA) has both benefits and detriments to its credit, and it has generated reams of debate material on both sides of the issues. Most of those issues concern whether NAFTA has or has not benefited the economies of the three countries involved in the agreement. One report says, "years after its passage, a look at the effects of NAFTA across all three countries illustrates an overwhelmingly negative picture" (Faux, 2001). This is true if an individual only looks at the negative aspects. That same report says that US workers have lost 766,000 jobs in...
2 Pages(500 words)Essay

American economy

...Consider the performance of the US$ in recent years in the light the performance of the US economy, in particular the US trade deficit. Clearly identify how economic theory can be used to help us understand this situation. The American economy is a free enterprise system that has emerged from the labors of millions of American workers; from the wants that tens millions of consumers have expressed in the marketplace; from the efforts of thousands of private business people; and from the activities of government officials at all levels who have undertaken the tasks that individual Americans can not do. The nation’s income and...
25 Pages(6250 words)Research Paper

NAFTA

...are to be stationed in near shore positions located in Mexico or Canada. The first benefit for large American based companies who choose to deploy a part of their operations in Mexico or Canada is the economic advantage of lowered recruitment and Human Resource Cost for skilled and unskilled labor as compared to the economic market in America (Wikipedia, 2006). Additionally, American operations managers and executives of companies working in Mexico have the advantage of a higher standard of living in Mexico since the cost of living is lower (World Bank Group, 2001). After a decade of free trade with America, the Mexican economy like the Canadian economy...
3 Pages(750 words)Essay

NAFTA

...ensure neither common trade barriers against the rest of the world nor the free flow of labor (Macdonald 173). Although it would establish a dispute resolution mechanism, there are no plans to create central North American government bodies like the European Parliament and the EC bureaucracy. Neither is there serious talk about a common currency system in NAFTA like that of the EC, although both Canadian and Mexican monetary authorities carefully manage their currencies exchange rates with the U.S. dollar (MacArthur 38). Liberalization of Trade The economic gains derived by liberalizing trade are net gains—there are both winners and losers. This point has grown in significance as...
8 Pages(2000 words)Essay

Latin american countries economy

...is prevailing for a longer period, political instability is one of the major reasons for poor economic growth in Venezuela. Venezuela’s politicians are not showing many interests in safeguarding the interests of the country; they are particular in safeguarding their own interests. The author says that the proven economic policies in Asia cannot be implemented in Venezuela like Latin American countries because of poor governance. He has pointed out that state created rents and rent-management systems, such as in industrial policy, may have worked in Asian countries; however, it may not work in Latin American economies since the administrative capacity to...
6 Pages(1500 words)Essay

American economy today

...American economy today Grade (29th, Oct. American economy today The of the American economy is not pleasing. Though some economic growth has been recorded of late, a poorly performing economy remains the reality. Some major improvements have been noted in the recent months, with the state of unemployment in America reducing to 7.8% from an initial standing of 8.1% by September 2012 (Rugaber, 2012). According to the USA bureau of labor, there were major changes in employment in the transport, warehousing and health sectors, which significantly reduced the rate of the unemployment (Rugaber, 2012). Thus, the...
1 Pages(250 words)Essay
sponsored ads
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.

Let us find you another Essay on topic Has NAFTA proven beneficial to the American economy Explain for FREE!

Contact Us