NAFTA_Case_final2[1] - Case Assignment To Trade or Not to...

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Case Assignment To Trade or Not to Trade: NAFTA and the Prospects for Free Trade in the Americas 1. Date of Submission: September 31, 2008
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2. Why did the United States, Canada, and Mexico sign the North American Free Trade Agreement? The rationale behind the establishment of this massive economic free trade zone lies not only in the consequential increase in trade volumes, but also in the provision of opportunities to conduct trade more efficiently and productively. All three countries recognized the economic benefits (e.g. increased trade, more job opportunities etc.) which could be reaped with the signing of NAFTA. From the perspective of the US, NAFTA was deemed as a breakthrough, especially in light of its chronic trade deficit and the slow progress of multilateral trade negotiations. Furthermore, the combined economic strength based upon the US’ superior technology, Mexico’s abundant cheap labor, and Canada’s affluent natural resources, was indeed an inviting proposition. The favorable geographical location was thought to bode well in magnifying the positive effects of NAFTA. For Canada, it was a chance for it to expand and diversify its trading partners, including Mexico. Their inclusion meant that they were able to share in the prospective positive economic effects brought about by NAFTA. Finally, for Mexico, NAFTA provided an excellent platform for it to develop its economic infrastructure via the introduction of advanced technology and foreign capital investment. 2. Which sectors of the economy would you expect to gain most from this
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This note was uploaded on 09/11/2009 for the course GSB #13821 taught by Professor Orin during the Spring '09 term at Panola.

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NAFTA_Case_final2[1] - Case Assignment To Trade or Not to...

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