Regional Integration Mexico, Canada & U.s.

Regional Integration Mexico, Canada & U.s. -...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Regional Integration Mexico 1 Regional Integration Mexico Rosa L. Flores Global Business Strategies/MGT/448 March 22, 2010 Prof. Rachel Vargas
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Regional Integration Mexico 2 Regional Integration Canada, Mexico and the United Sates Regional economic integration is basically when two countries agree in a geographic sector to lower, and possible eliminate tax and nontax obstacles, so they can have a free market trade (Hill, 2009) Nonetheless, economic integration also means to any form of understanding in which countries concur to bring together any policies regarding money and trade. North America Free Trade Agreement Discussions among the governments of Canada, The United States and Mexico started back in 1992, the outcome of the discussion was the creation of the North American Free Trade Agreement (NAFTA); the contract, eliminated all taxes on joint trade among the three countries, becoming official in the year 1994. Because of the agreement the countries that were protected under NAFTA would no longer have problems with taxes, to trade between the three countries. Some of the taxes were immediately canceled, and others would cancel throughout a periods of five to 15 years; allowing a systematic change to free trade with Mexico, completed by the year 2008 (U.S. Customs and Border Patrol, 2008). Levels of Regional Integration The levels of regional integration are several among them is the free trade, this trade has no roadblocks for the trade of goods among the countries that have join in; a customs union, which is a free trade area that is compose of regular external trade rules; a common market, which permits manufacturing to shift between the countries; an economic union, which is a regular market that needs a universal currency, tax rate, and monetary and fiscal policies; and finally, a full political union this union has a central political unit that coordinates the economic, social and foreign policy of member states (p. 277 - 278).
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 6

Regional Integration Mexico, Canada & U.s. -...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online