NAFTA - NAFTA The North American market is one of the...

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The North American market is one of the richest in the world. Measured in terms of GDP, which is the equivalent of Western Europe. But with a little smaller population, GDP per capita in North America, Canada, Mexico and the U.S. is about 12 percent more than in Western Europe. The Free Trade Agreement (NAFTA) which came into force on January 1, 1994, sets the agenda for the elimination of tariffs for members . . As a small country, Canada has always been care in the treatment of its large neighbor, the U.S., however, compliance with the This agreement threatens our very existence. Canada was unfairly taken advantage in the singing of this agreement, our identity as a sovereign nation that is in risk. The U.S. market is one of the most sophisticated and demanding. It is an excellent starting point for developing and launching new products. From a Canadian base, companies can establish a strong market position in North United States and then come to serve global markets. This agreement, which contains many key provisions for facilitating the conduct of business between the three countries, has been a benefit for Canada and the United States and Mexico. The continent- wide transportation system that links together the market is efficient and cost-effective. Carriers of all modes are investing in more sophisticated technology and establish strategic alliances to improve service. Border crossings are getting easier. Canada is an ideal place to serve the entire North American market. The Canadian-based companies have preferred access to a market of 380 million people with a combined Gross Domestic Product (GDP) of over 10 billion (Canadian Dollars). However, our participation in the agreement allowing the U.S. unhindered access to our market. This poses a serious problem when looking at pure numbers. Canada is a country of approximately 28,000,000 people and the U.S. a country of around 280 million. The extra "0" means the U.S. ten times higher after Canada in the size of the population. The implications of this are enormous. Due to the size difference is logical to assume that the average Canadian company is about ten times smaller than its U.S. counterpart. As example, Bell Canada (major telecommunications company in Canada) is a value estimated 9 billion dollars. AT & T (U.S. telecommunications company) is worth about 108 billion. These numbers speak for themselves. Although it has not happened yet, AT & T could seek a war of competition in Bell Canada There are many ways to see the U.S. markets. Initially, they may be seen as three national markets with differential characteristics in terms of tastes, preferences, disposable income and spending patterns. Because the national accounts are the source of much general information
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This note was uploaded on 09/20/2011 for the course INB205 INB205 taught by Professor Danielaportuese during the Winter '09 term at University of Phoenix.

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NAFTA - NAFTA The North American market is one of the...

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