Question

Topic: Production & Global Trade - USA & NAFTA Partners (1-2.5 pages) Thank you!

1. Detailed analysis: Include detail analysis of NAFTA's impact on US and other members like Canada, Mexico. How NAFTA change the trade volume among members significantly. Some of the disadvantages that occurs because of NAFTA.

· Benefits of the NAFTA for U.S. business

· NAFTA's impact on U.S. jobs

· NAFTA's impact on Canadian and Mexican economy

· Some of the industries that are experiencing significant benefits as a result of the NAFTA

· How does the NAFTA affect the environment and some disadvantages of NAFTA?

Answer 1

North American Free Trade Agreement is an agreement signed by united states, canada and mexico. it creates a trilateral bloc in north america. it was created with the aim of expanding trade between these member countries nad also to make these countries more competitive in the global market. the countries hope to create a free trade zone by reducing tariffs and trade barriers, where companies can benefit from the transfer of goods. it is also the largest free trade agreement in the world .

now Coming to that which opportunmes available to member countnes of NAFTA?
There are a lot of opportunities,among them these followmg are important ones:-
1.first of all it Increased trade between these countries exponentially and its reason is quite simple because this agreement eliminated tariffs.
2.Beacause of increment in trade,GDP was also increasedahat led to better growth rate which increased foreign direct investment as well as created jobs.
3.the agreement helped wrth govemment spending. That's because each nation s government contracts became available to suppliers in all three member countries. That increased competition and lowered
costs.
4.it also lowered prices beacause of eliminated tarnfs.
then why is NAFTA severally criticized?
Answer is very Simple that we all know that growth always comes with costs and same happens in this agreement too.it's disadvantages or negative impacts are following:
1.Since labour is cheaper in other countries many manufacturing industries withdrew part of their production from the high cost United States.this led to lost of of many u.s. jobs. The hardest hit states were Calrfomia, New York, Michigan, and Texas. They had high concentrations of the industries that moved plants to Mexico.

2.it lowered the u.s. wages beacause of lower wages of mexico.
3.mexico s farmers were put out of buisness because of eliminated tariffs. u.s. exported its corn and other crops at very low rates and with that mexIco's farmers were not able to compete and the mexican farmers who managed to stay in business were forced to use more fertilizers and farm marginal land to survive. That created more pollution and deforestation.
4.Maquiladora workers were exploited because the workers had "no labor rights or health protections",
so from above points or comparison of pros and cons we can analyse that like every other free trade agreement 'NAFTA' also gives the opportunity for better growth and development and it increased economic output of these member countries rapidly but like i said above that if a thing or agreement is benefitting some people or a country then it Will also inversely affect some areas of that country.NAFTA is also doing the same ,it increased GDP and gives higher growth rate and better development but also resulted in increase in unemployment and bad impacts on environment and exploitation of labours etc.

we can deduce that nothing can justify the cons of NAFTA but from economic prospective NAFTA is a success. Without nafta the United States would not be as strong a competitor with the European Union or China and from social perspective it comprises of various bad effects.so it should also look in betterment of society Instead of just focusing on economic output.