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Clinton, Congress, the Constitution and NAFTA
As Thomas E. Woods, Jr. (2004) asserts, the Clinton Administration did much to expand the role of government in the lives of ordinary citizens. Woods alludes to the Clinton Administration's policies as "damaging and counterproductive expansions of government power, particularly in agricultural, housing, and environmental policy" (p. 239). Just looking in the realm of agribusiness, the expansion of government power and corporate monopoly is seen clearly in the North American Free Trade Agreement (NAFTA) that destabilized Mexico for the sake of corporate profits. NAFTA was adopted January 1, 1994, following a debate that did little to prevent the agreement from being signed. However, the effect of NAFTA was not what the rhetoric made it seem it would be. This paper will analyze the supporting and oppositional perspectives on the passing of NAFTA as well as the constitutional powers that came into question (and…… [Read More]
S. attributed to NAFTA. Figure 1: Rise in the Business Investment (adapted from "NAFTA -- Myth…," ¶ 1).
Myth #2: NAFTA has cost the U.S. jobs.
Fact: U.S. employment rose from 110.8 million people in 1993 to 137.6 million in 2007, an increase of 24%. The average unemployment rate was 5.1% in the period 1994-2007, compared to 7.1% during the period 1980-1993. ("NAFTA -- Myth…," ¶ 2)
Figure 2 reflects U.S. Employment Increases related in response to Myth #2.
Figure 2: U.S. Employment Relating to NAFTA (adapted from "NAFTA -- Myth…," ¶ 2).
Myth #3: NAFTA has hurt America's manufacturing base.
Fact: U.S. manufacturing output rose by 58% between 1993 and 2006, as compared to 42% between 1980 and 1993. Manufacturing exports in 2007 reached an all time high with a value of $982 billion. ("NAFTA -- Myth…," ¶ 3)
Figure 3 portrays the increases relating to the U.S. manufacturing…… [Read More]
S. poultry exports to Canada in 2003 are estimated at about $290 million, a 77-percent gain over the pre-NAFTA level." The dairy products have revealed positive trend, prior to the implementation of the Uruguay ound provisions the Canadian fluid milk sales was insignificant, "the execution of the Uruguay ound provisions one year after NAFTA saw Canada's import control regime switch from a scheme of import quotas to a trade free quota system, the switch over was responsible for the protection of the Canada's fluid milk production." The trade quotas were eliminated for fluid milk and dairy products, including yogurt, powdered whey, specialty creams, dairy spreads, ice cream and ice cream novelties, cheeses, butter and margarine. As per the quota elimination system, major provision of NAFTA, low duty rates were imposed on the imports, the imposition of the duty was "up to the limit, and to higher rates over the limit."…… [Read More]
" (Economic Policy Institute rief, 2001) While all U.S. states lost jobs the following specific outcomes are stated by the Economic Policy Institute:
The 1 million job opportunities lost nationwide are distributed among all 50 states and the District of Columbia. Those affected most in terms of total jobs displaced include: California (-123,995), Texas (-72,257), Michigan (-63,148), New York (-51,582), Ohio (-49,886), Illinois (-47,701), Pennsylvania (-44,173), Florida (-39,987), Indiana (-35,157), North Carolina (-34,150), and Georgia (-30,464)" (2001)" (Economic Policy Institute, 2001)
The Economic Policy Institute also states that wages and incomes in Mexico have been affected by NAFTA. The brief states that: "Official unemployment levels in Mexico are lower now than before NAFTA, but this decline in the official rate simply reflects the absence of unemployment insurance in Mexico. In fact, underemployment and work in low-pay, low-productivity jobs (e.g., unpaid work in family enterprises) actually has grown rapidly since the…… [Read More]
NAFTA vs. The EU
History and formation of the trade bloc
The North American Free Trade Agreement (NAFTA), a free trade agreement uniting Canada, Mexico, and the United States, was signed in January 1994 by Democratic President Bill Clinton. The intention of the agreement was to eliminate most of the tariffs on products traded between these three nations. The tariffs were phased out gradually, and the full agreement was not realized until 2008. The industries that felt the greatest impact due to NAFTA were agriculture, textiles and automobiles. "NAFTA also implemented intellectual-property protections, established dispute-resolution mechanisms, and put into place regional labor and environmental safeguards, though some critics now lobby for stronger measures on this front" (Teslik 2008).
The role that the countries involved in the trade bloc play in the global economy
The U.S., Canada, and Mexico have the number one, 9th, and 14th largest GDPs of all…… [Read More]
Employers and employees therefore now have an increased opportunity to utilize their talents under NAFTA. Canada's employment rate has for example increased by 17.5% since the inception of the Trade Agreement (Foreign Affairs and International Trade, Canada).
As mentioned above, other important matters have also received attention under NAFTA. Environmentalism has an increasingly important part not only of sustainable economic growth, but also of politics. This serves as another unifying factor of the three countries under NAFTA. Concern for the environment then connects with a concern for the human factor in terms of working conditions. NAFTA therefore focuses on a shared concern for the interconnection between humanity and the environment within which human beings function. As such, the three member countries are involved in several parallel environmental and labor agreements. pecifically, for example, the North American Agreement on Environmental Cooperation successfully enforces environmental laws in all three member countries. This…… [Read More]
NAFTA and the American Trucking Companies
The North American Free Trade Agreement is a trade agreement signed in November 1993 between the United States, Canada, and Mexico (NAFTA pp). NAFTA promoters, which include many of the world's largest corporations, promised it would create hundreds of thousands of new high-wage U.S. jobs, raise living standards, improve environmental conditions and transform Mexico into a booming new market for U.S. exports (North pp). Opponents of NAFTA believing that calling it a trade agreement is misleading and that it is actually an investment agreement with core provisions that grant foreign investors a remarkable set of new rights and privileges that promote relocation abroad of factories and jobs and the privatization and deregulation of essential services, such as water, energy and health care (North pp). One of the major contentions of NAFTA has been the effect on the trucking industry.
Under the North American Free…… [Read More]
NAFTA and U.S. usiness
Many analysts warn that those who were impressed by the growth of the U.S. economy and its manufacturing sector during the 1990's when both boomed even as trade deficits rose and believe that the dollar's role as anchor of the world economy will allow deficits to climb even higher should consider America's trade performance, especially with the rising import penetration rates, resulting in the decline of domestic market shares (Outside 2002).
Trade deficits are the result of living beyond national means, and Americans have of late become so ambivalent about their own high indebtedness that "it's no surprise to see ambivalence about the nation's red ink" (Outside 2002). However, market share is less controversial, for unlike borrowing heavily, which can and often does lead to economic success if the borrowed money is used wisely, losing market share has no present or potential upside (Outside 2002). "Companies…… [Read More]
The United States signed its first free trade agreement (FTA) with Canada in 1988, and soon began pursuing a subsequent deal with NAFTA that would replace and expand that deal. NAFTA came into force in 1994, and by 2008 all of the duties and restrictions that were included in the deal were eliminated. The agreement was intended to increase trade between the three nations, building on the successes of that initial deal with Canada. This paper will look back at the first 20 years of NAFTA and discuss the impacts of the deal on the American economy. Particular attention will be paid to the city of San Antonio, located in the south of Texas, less than 150 miles from the Mexican border. This geographic positioning gives San Antonio a competitive advantage as a hub for U.S.-Mexico trade, so it is important to examine the issue of how NAFTA has…… [Read More]
Maritime transit is generally considered the lowest cost and lowest pollutant emitting source of all available alternatives. However the sheer number of vessels in transit at any one time is still large enough to warrant concern among the environmentally conscious.
One extremely recent development offers new insight of the future of the environmental concerns associated with maritime travel. The International Maritime Organization (IMO), a UN body that regulates world shipping, will be deciding on whether or not to reduce sulfur levels in the emissions produced by ships (Pearce, 2010). Sulfur plays a very ironic role in today's stage of environmental concerns.
On one hand, it is one of the contaminants produced by sulfates contribute to global warming. One the other hand, sulfur levels actually protect the environment in a roundabout way. Sulfate particles actually hover in the atmosphere an act to provide a layer of shade to the earth's surface.…… [Read More]
Economics of NAFTA
There have been a number of changes in the global economy of the world over the past decade. It is important to examine the North American Free Trade Agreement (NAFTA) and determine if it has helped and/or hindered the economies of all three countries, if it has accomplished what it was established to do, and if over the past ten years it has resulted in additional trade agreements within the Americas.
The North American Free Trade Agreement (NAFTA) went into effect July 1994. It was built on the "Canada-U.S. Free Trade Area (CUSTA), which was formed January 1, 1989. Under CUSTA most tariffs and quantity trade restrictions were to be removed within 10 years and disputes were referred to a panel of experts (hubcap.clemsom.edu/~gjwells/TO/tsld015.htm)." Mexico inquired about joining CUSTA after it was formed, prompting negotiations in June 1991 and the formal announcement of the NAFTA agreement…… [Read More]
Statement of Issue:
With President Trump upending the Trans-Pacific Partnership, what can be done to move the United States policy on trade towards an open market scenario?
The United States economy has made some positive strides with the Trump Administration. However, President Trump’s decision to upend the Trans-Pacific Partnership has caused a setback in the desire for the country to become a global trader. The drive for open markets has created a need within the United States government to adopt policy that will allow for trade to expand over to international waters, thus allowing the United States to grow in terms of becoming the main contender in the global economy.
Without the introduction of policy that can promote open trade, the United States may face increasing competition from other foreign powers like China. It is up to the United States government to choose to continue the progress towards…… [Read More]
One of the key contentious issues in the recently finished United States presidential elections from members of both parties was that of ending the free trade agreements. Free trade takes into account the lack of restrictions on imports or exports by government administrations. Therefore, there is the free flow of goods and services to and from nations based on the market demand and supply. In the contemporary, the United States has effective free trade agreements with twenty nations. One of the major key trade agreements for the nation is the North American Free Trade Agreement, which delineates the guiding principles for transnational trade with Mexico and Canada (International Trade Administration). The purpose of this paper is to discuss the costs and benefits of free trade and the impact on the United States if the deliberations on ending free trade agreements come to fruition.
Creative Destruction and Impact on the…… [Read More]
alance of trade. Retrieved from Web site: http://en.wikipedia.org/wiki/alance_of_trade
uchanan, P.J. (2005, July 27). CAFTA: Ideology vs. national interests.The American Cause. Retrieved from Web site: http://www.theamericancause.org/a-pjb-050727-cafta.htm
uchanan, P.J. (2006, March 10). The fruits of NAFTA.WorldNetDaily. Retrieved from Web site: http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=49201
uchanan. P.J. (2007, February 27). Free trade and funny math. Retrieved from Web site: http://www.theconservativevoice.com/article/23116.html
CAFTA, trade deficits and jobs. usiness Coalition for U.S.-Central America Trade. Retrieved from Web site: http://www.uscafta.org/policy/view.asp?POLICY_ID=136
Henriques, G. And Patel, R. (2004. February 13). NAFTA, corn, and Mexico's trade liberalization. The Americas Program. Retrieved from Web site: http://126.96.36.199/search?q=cache:G1COehFHM_IJ:americas.irc-online.org/pdf/reports/0402nafta.pdf+agriculture+mexico+nafta&hl=en&gl=us&ct=clnk&cd=8
NAFTA: A strong record of success (2006, March). Office of the United States Trade Representative. Retrieved from Web site: http://www.ustr.gov/assets/Document_Library/Fact_Sheets/2006/asset_upload_file242_9156.pdf
NAFTA partners lead strong U.S. export growth. Retrieved from Web site: http://www.ita.doc.gov/press/publications/newsletters/ita_0706/nafta_0706.asp
NAFTA works brochure. International Trade Canada. Retrieved from Web site: http://www.dfait-maeci.gc.ca/nafta-alena/broch-main-en.asp
Peterson, C. (2005, April 12). What USDA and USTR won't tell you about NAFTA…… [Read More]
"While wages south of the border were lower than within the United States, lower productivity and higher costs for critical elements such as power and water made Mexico less viable than many originally thought" (Sinclair, 2004). But even so, the factories continued to operate, causing job loses for the American workers. It is rather difficult to give a clear number of the jobs created, according to NAFTA advocates, or the number of jobs lost, according to disclaimers of NAFTA. "When NAFTA was established, it was promised that this trade agreement would create hundreds of thousands of jobs for U.S. workers. However, it is very difficult to determine how many U.S. textile and apparel jobs have been created or lost as a direct result of NAFTA. When looking at a pro-trade source, over a hundred thousand jobs have been created because of NAFTA; when viewing a pro-labor source, however, over a…… [Read More]
international community depends on a wide array of nongovernmental organizations to deliver the social and economic assistance needed to join the global economic community. Among the organizations committed to this end is the North American Free Trade Agreement (NAFTA) which purports to improve the trade relationships among the countries of Latin and North America. To determine the efficacy of NATFA in promoting seamless trade between the United States and Canada, this paper review the relevant literature concerning these issues to develop and informed and timely answer to the question, "If NAFTA a good deal for North America or not?" A summary of the research and salient findings concerning these issues are provided in the conclusion.
In truth, it would seem that anything that facilitated increased trade among North American countries would be advantageous. As the official Web site for NATFA points out, "For over 30 out of the 50 States,…… [Read More]
. economy, both directly and indirectly." Greater qualification on his part and more objectivity would have made for a more impressive article.
The claim -- that Africa is really a wealthy country -- sound unbelievable. Yet, Zachary brings plenty of evidence to support his point. Like cott, Zachary's evidence includes figures and facts. Unlike cott, his argument comes across as more believable since it refrains from crusading too intensely on one side of the issue. Zachary does address the other side of the coin -- that poverty is rampant in Africa. In this way, he takes into account those who may find his argument surprising. Yet, I find his address of this to be too meager: there is only a slight paragraph towards the end that admits that Africa still struggles in certain areas. Given the extent of Africa's reputation of poverty and given the enormous history that…… [Read More]
NAFTA Lived up to Its Promises?
The North American Free Trade Agreement (NAFTA) is a trilateral trade agreement creating a free trade area between United States, Mexico, and Canada. The agreement came into force on 1 January 1994, and was hailed as the economic milestone that would help to increase trade between the three countries, and create a higher level of efficiency to provide economic benefits for the parties to the agreement. The agreement had the aim of eliminating trade tariffs between the countries, a significant number of tariffs were eliminated immediately, with tariffs that remained being phased out over the following 10 years. However, more than 20 years after the agreement was put into place, is there any evidence to demonstrate that the reality has lived up to the expectations.
The claims regarding the agreement included statements that it would help to create new and better jobs, help to…… [Read More]
NAFTA: Two Sides of the Peso
The North American Free Trade Agreement (NAFTA) went into effect January 1, 1994. The North American Free Trade Agreement allows U.S. companies to sell their goods in Mexico tariff-free. It also allows Mexicans to set up low-wage factories to produce their goods to sell in the United States duty free. [Dowling, 1996]. This agreement removed most barriers to investment in between Canada, the United States and Mexico. Its intention was to boost the economies of all three countries by expanding their potential markets and allowing them to take advantage of what each of the other two countries had to offer. Since its adoption, its effects have been debatable, especially concerning safety and environmental issues in the United States and the effect on the Mexican Peso.
hen we begin to read to wealth of opinions about NAFTA, one thing becomes clear. There is no set…… [Read More]
NAFTA and its affects on the Mexican foreign trade. The writer explores what NAFTA is and how it operates then outlines the way it impacts the Mexican foreign trade. There were six sources used to complete this paper.
NAFTA's Impact on Foreign Trade with Mexico
The North American Free Trade Agreement was put together in 1993 and provides agreed upon resolutions for its members when it comes to free trade boundaries and rules. The NAFTA allows its members to regulate things such as tariffs, import and export regulations and other issues that come up in the course of trade business between the nations. NAFTA had a positive impact on Mexico's free trade industry because it strengthened an already strong relationship between the United States and Mexico.
Several years before the NAFTA agreement went into place Mexico began working on its economic reforms to improve its trade business both locally and…… [Read More]
At that point, the competitive advantages of the American retailers would shine through. U.S. companies that lack these competitive advantages would see no benefit from entering the Mexican market, regardless of NAFTA.
3. Comerci's main move to remain competitive was to try and match Wal-Mart's buying power. It tied with another competitor to form a buying group, in the hopes that it can lower its cost of goods sold to a level that would allow it to compete with Wal-Mart. This appears to have been the main strategic response the company has made to compete.
Ultimately, Wal-Mart derives its buying power from its global scale. In addition to its massive U.S. market, it buys for Mexico and Canada at the same time, and often its goods from China are sold by its stores there as well. This means that Comerci cannot match the buying power of Wal-Mart no matter with…… [Read More]
Wal-Mart, Mexico, and NAFTA
Was NAFTA the reason for Wal-Mart's success in Mexico or was it Wal-Mart's new competitive strategy? Wal-Mart's generic competitive strategy is clearly that of a 'low price' model in all nations where the retailer is located. It sells a seemingly infinite amount of goods and services in an undifferentiated fashion. The main reason that consumers go to Wal-Mart is because of its prices. Wal-Mart claims to offer one-stop shopping with the lowest prices a consumer can find in the area. Without offering such low prices, the store has little traction in the market, given that other retailers offer a more expansive product line of specific items, offer specific special deals, and offer greater prestige to the customer in terms of store name. NAFTA (The North American Free Trade Agreement) marked a watershed in Wal-Mart's relationship with Mexico. Today, Wal-Mart is the largest private employer in Mexico…… [Read More]
Reflection Paper – International Trade
There has been a lot of talk lately about NAFTA being put at risk – either the US wanting to pull out of the deal or to significantly re-negotiate its terms. Industries that either benefit from NAFTA or feel that they do not benefit are lining up to express their positions – the latest being the auto industry, which has generally benefited significantly from NAFTA's country of origin rules
This discussion makes one reflect on the objectives of trade policy in general. The entire point of trade policy is to expand the economy by leveraging comparative advantages. While there are high profile instances where Mexico has comparative advantage, and has therefore won some trade away from the United States, the US has the most number of products in which it has a comparative advantage, with Mexico the least (Mzumara, Chingarande & Karambakuwa, 2012).…… [Read More]
(Mittleman, 2000, pp. 135 -- 154)
At the same time, there must be the establishment of various regulatory agencies that will have the power to enforce these standards in all three countries. The basic model that can be used is to follow the provisions that were established in the financial services industry known as FINRA. This is a consolidation of American and Canadian securities law enforcement. What make this approach so unique; is that it is combining the authority of different agencies to create a way of universally enforcing the law. This kind of strategy could be used in the enforcement of safety and environmental regulations under the provisions of NAFTA. If this can take place, it will reduce the possible damage to the environment and it will improve safety standards in countries such as Mexico. This is when businesses will relocate to the region based on the benefits that…… [Read More]
According to the Office of the United States Trade Representative website, which is part of the Executive Office of the President, the United States has trade agreements with a total of twenty countries. Those countries are Austarlia, Bahrain, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Israel, Jordan, Korea, Mexico, Morocco, Nicaragua, Oman, Panama, Peru and Singpore. Beyond that, there are also regional agreements such as the Trans-Pacific Partnership, or TPP for shot. There are currently negotiations under way to have a similar agreement which is called the Trans-Atlantic Trade and Investment Project, or T-TIP for short, with the European Union. Finally, there are broad-based agreements that involve free trade such as the North American Free Trade Agreement (NAFTA) and a few others that are noteworthy (USTR).
Benefits of NAFTA
As far as whether the NAFTA agreement benefits the United States, the answer…… [Read More]
hat is the basis for support of free trade agreements and what benefits are derived?
The conservative Heritage Foundation takes the position that free trade allows American workers to "specialize in goods and services that they produce more efficiently" than anywhere else in the world; then, those goods can be (and are) exchanged for services and goods "that other countries produce at higher quality and lower cost" (Eiras, 2004). This policy helps America become more "competitive and innovative," Eiras writes; and by being innovative, America then produces new technologies which offer opportunities to produce even more goods and services (p. 1). The benefits for America vis-a-vis free trade agreements include: a) the chance to cure more diseases; b) improved educational facilities and institutions; c) less pollution; d) and greater economic growth and a greater "range of investment opportunities" (Eiras, p. 1).
hen there is strong economic growth, which…… [Read More]
Move From Canada
The author of this report has been asked to consider a question about whether a pharmaceutical company should move from its current location outside Toronto to the United States in light of a few factors. These factors include their land outside of Toronto being very valuable, the fact that the taxes and costs of doing business being higher in Canada, the lowered trade barriers that came from the North American Free Trade Agreement (NAFTA) and a few other reasons. While it may seem like an easy decision to make, the company should be diligent about whether they make the move or not because there are both financial and non-financial considerations that should be taken seriously.
As noted in the parameters of the assignment, there are several reasons why a move from Canada to the United States, with the destination state being Colorado, would be a good…… [Read More]
The North American Free Trade Agreement (NAFTA) was enacted in November of 1993 with the objective to facilitate the free flow of goods, services and labor between the United States, Canada and Mexico. NAFTA was not only used to eliminate tariffs between the relevant countries but it also addressed issues such as transportation, border restrictions, as well as environmental issues between the participating countries Although NAFTA required some tariffs to be dropped immediately others are subject to a fifteen year grace period. NAFTA addresses many other issues than tariffs as well as acts to open protected sectors in agriculture, energy, automotive trade, and textiles. NAFTA also establishes an international agreement on intellectual property rights.
There are several political issues that arouse from the passing of NAFTA. One issue that constantly gains the media's attention is its effects on jobs. For example, labor in Mexico is significantly cheaper…… [Read More]
Adler reveals that poverty is systemic: a sign of a corrupt system. Mollie James' and Balbina Duque's only chance of extricating themselves from poverty is to inject more political power and energy back into the formation of labor unions. The power of the people to overcome and overthrow corrupt regimes has been proven time and again throughout human history; the struggle is not an easy one but there is no way that Duque or any of her colleagues around the world are going to achieve any upward social mobility within the current system. Besides just the suppression of labor unions and the collusion between the PI and big business, other examples of how systematic and systemic the problem is include the glaring idiocy of the bailouts. The Clinton administration arranged a record-breaking fifty billion dollars to the very people who were creating the problems that James and Duque faced. As…… [Read More]
North American Free Trade Agreement (NAFTA). Specifically, it will present the pros and cons of NAFTA, and how it will affect the apparel industry, especially in the California and/or Los Angeles market. It will consider such factors as how it affects the job market, manufacturers, contractors, etc.
THE EFFECTS OF NAFTA
The NAFTA agreement has been controversial since it first began in 1992. Many experts felt that the United States would lose a large amount of jobs to Mexico, because of lower wages and fewer trade union restrictions. It created Free Trade between Mexico, Canada, and the United States, and eliminated a large number of tariffs on a sliding scale over the next fifteen years. "On 12 August 1992, the United States, Canada, and Mexico agreed on a plan for free trade that would gradually eliminate tariffs over fifteen years and stimulate trade and investment. hile protecting the 1988 free…… [Read More]
For instance the World Trade Organization reports having "allowed First World countries to raise trade barriers protecting their companies, even as we have served as their forum for insisting that Third World countries lower their trade barriers more and more." (WTO,
The truth is that if richer nations were to open their markets to the LDC countries for increase opportunities of export, generated would be approximately $700 billion in additional trade for developing countries. (UNCTAD Trade and Development Report, 1999; in WTO,
The World Trade Organization relates that no known causal link exists between foreign investment and the reduction of poverty as approximately eighty percent of foreign direct investment in "in the form of mergers and acquisitions, little in the form of productive investment that creates jobs and exports."
WORLD ECONOMY in the LAST TWO DECADES
The work entitled: "The North American Integration Regime and Its Implications for the World…… [Read More]
The article does not set for itself the objective of tackling cultural differences as a wider concept, but points out to specific challenges of cultural differences.
The second textbook excerpt makes reference to distinctive aspects of free trade agreements, including here protectionism, however, contrary to the article, it does not address the aspect of jobs protectionism or the challenges of outsourcing for different countries.
Question 3: There are several things presented as truisms in the first article, however, there are important points that raise questions as well. One of these aspects is the idea that the author proposes of identifying local citizens to help in better understanding local cultures. If by identifying the author refers to actually hiring them, in some cases this is not possible. In some countries, the local citizens do not have the right business approach and sufficiently training them often takes time and may imply higher…… [Read More]
economic advantages for the U.S., Mexico, and Canada of signing the North American Free Trade Agreement (NAFTA)?
The most obvious, direct impact of NAFTA upon the three signatory nations is the liberalization of international trade between them all. By doing away with tariffs and other prohibitive trade restrictions, consumers in all three nations can more easily purchase one another's goods at lower prices. Not only was the U.S. able to purchase less expensive goods from Mexico: Mexico likewise experienced an increase in international trade, foreign direct investment, and labor productivity (Iyer 11-12). Canada also saw increased labor productivity and a greater free flow of trade between the two nations but both Mexico and Canada lost jobs in their agricultural sectors while they gained jobs in their manufacturing sectors (Iyer 13). The theory of comparative advantage in trade suggests that when a nation does or makes what it can do 'best,'…… [Read More]
It is likely that the effects of this slowdown will be negligible, therefore.
The Balance of Germany's Trading Partners
Germany maintains an overall trade surplus of approximately a billion dollars, exporting more goods that are produced in Germany than it imports. As the largest European economy with a still-vibrant industrial and manufacturing sector, this trade imbalance is hardly surprising-it is more surprising, in fact, that the surplus is not larger than it currently stands. When it comes to Germany's specific trading partners, there are also few surprises -- the United States is a major importer of German goods, though it exports less to the Germany than do other nations; Spain, France, and Italy also have significant trade relationships with Germany -- all of them are border-sharing neighbors with the country, and all of them also have a trade deficits, importing more German goods than they export back. Given the overall…… [Read More]
Despite the fact that it is considered to be responsible for the immense inequalities in the economic sector, it also provides the progress for least developed countries and the environment for the maintenance of the developed countries. The existence of trade blocks such as NAFTA or ASEAN are even more reasons to consider globalization as a means of improvement in terms of politics, economic, and social aspects of life.
ASEAN. N.d. About. 28 September 2011 http://www.asean.org/about_ASEAN.html
Ian Goldin, Kenneth einert. 2006. Globalization for development: trade, finance, aid, igration and policy . World Bank: Palgrave Macmillan, Washington, DC .
D Henwood, 2003. "Beyond Globophobia." The Nation .November 28 September 2011 http://www.globalpolicy.org/globaliz/define/2003/1113globophobia.htm
D. Held,. 2005. Debating Globalization . Polity Press, Cambridge.
Economic Policy, 20 (1) Spring, 72-84
Woods N. 2000a 'The Challenge to International Institutions'. Primary eading.
D Henwood, "Beyond Globophobia." The Nation .November 13, 2003. 28 September 2011
< http://www.globalpolicy.org/globaliz/define/2003/1113globophobia.htm??…… [Read More]
Global usiness Strategies
The aftermath of World War II has seen the evolution of economic regionalism as a means for fostering foreign trade thereby economic growth of participating countries. Economic regionalism was a conscious attempt to manage the opportunities and constraints created by international economic tie-ups after World War II through institutional arrangements facilitating free flow of goods and services and coordination of foreign economic policies. It embraced free trade areas, customs unions, common markets and economic unions. On the basis of the level of integration the economic regionalism can be differentiated widely, which can be visualized in the form of creation of free trade areas, custom unions, common markets and economic unions. The member countries practice preferential tariffs levying comparatively lower rates of duty on imports of goods among themselves than that from non-member countries. Free trade among the member countries is protected by a schedule of customs…… [Read More]
As, it declined from: 24% (in 1994) to 16% (by 2008). While at the same time, wage increased from $3,814 in 1996 to $7,870 in 2009. The below table is illustrating the overall scope of these changes in income during this time. (Villareal, 2010)
Annual Income Levels in Mexico from 1996 to 2009
These different figures are important, because they are showing how once NAFTA was ratified, is when it would slowly address inequalities inside Mexico. This is an indication that the abandoning of the classical model would have a positive impact on the country. (Villareal, 2010)
Therefore, this is highlighting how there is a causal relationship between the low wages and lack productivity in Mexico in comparison with the U.S. Once the views on trade began to change, is when there was a transformation in these…… [Read More]
The Asia-Pacific Economic Cooperation (APEC) was started on January 1989 by Australian Prime Minister ob Hawke when he called for better economic cooperation within the Asia Pacific Region. Currently, the organization has 21 members including, Australia, Japan, Singapore, and United States. At the ogor summit, APEC started discussions regarding the "ogor Goals" which aims to reduce tariffs between zero and five percent in industrialized countries by 2010 and developing countries by 2020 (Wikipedia contributors, 2007). APEC had a combined GDP of $6 trillion in 1998 and 42% of global trade. The main advantages of this organization are deregulation, sharing of technology, and policy certainty ("What is APEC?" n.d.). Some disadvantages include selective policy-making to push the agenda of a specific country using intimidation strategies, increased inequality and poverty, anti-democratism, and high costs with respect to human rights violations and environmental damages (Kelsey, n.d.).
The Association of Southeast Asian Nations (ASEAN)…… [Read More]
Unfortunately, their American dream is more often than not the American nightmare. It does not provide living wages for their families to live on. Their blood, sweat and tears build the companies. The leaders attempt to evade paying the workers their fair share by moving to other states where they can pay less money. This is exactly what Universal Manufacturing does by moving its operations to Mississippi. It goes there to pay less money and avoid the unionization that is the only weapon that the workers have in their struggle to organize and get more money and better working conditions. Mega corporations in the time of globalization do exactly the same thing, but just on a much greater scale in the time of NAFTA when selling out to lowest bidder and making people into commodities that can be sold over international borders has been raised to a high art.
Part…… [Read More]
Logistics Design Alternatives
Intermodal transportation essentially refers to the process of transporting passengers and cargo by means of multiple, inter-linked transportation modes. It capitalizes on the comparative advantage of the individual modes to bring about high productivity at considerably low freight costs. Intermodalism has gained prominence over recent years, and is currently an integral component of international trade and global supply chain management. The U.S. Penal Code (49 USC, Chapter 55, Sec 5501, 1998) presents the government's commitment towards delivering a National International Transportation System that is not only environmentally fit, but also economically efficient and in congruence with ongoing attempts geared at making the U.S. economy more competitive on the global front. According to David Collenette, the former Transport Minister of Canada, intermodal transportation is about efficiency and safety in transportation. Canada and Mexico are among America's leading trade partners; in fact, trade volumes between the three have risen…… [Read More]
Using web marketing strategies combined with educational initiatives -- such as downloadable podcasts and educational websites with a marketing and advertising component might be one way to capitalize upon this trend (Trade blocs, neoliberalism, and the quality of life in Latin America, 2004, UCLA).
hat potential impact does the most important trade bloc have on the marketing and business strategies of Apple Computer and general website marketing?
Mercosur has taken a hostile attitude, in general, to large estern companies. It believes such companies are profiting off of less-developed nations and prevent such nations from fully entering the developed world as global players. This reflects, to some extent, the attitude of the citizens of the nations of Mercosur countries. Deemphasizing the 'Americanness' of Apple might be necessary in Brazil, in contrast to nations where the American quality of a product might have more cache.
Does this trade bloc represent primarily economic…… [Read More]
The current trend in trade agreements has demanded a reevaluation of such change that is likely to remain an aspect of IHM for its entirety. "International law clearly delineates that companies have human rights responsibilities, although some of the specific responsibilities are ambiguous." (Aaronson, 2003, p. 63) Significant lawsuits against U.S., UK and Canadian Multinational organizations has made it clear that if business and government are not willing to police themselves, on issues of universal human rights, such as labor policy and political and social intimidation through the workplace then the international communities will do so independently through amendments and amalgamations to trade agreements.
Scullion reiterates the importance of the issue of International HM in the second edition of Human esource Management: A critical Text, edited by John Story. In this section Scullion elaborates on the ideas that were introduced in the first edition by the same author and editor.…… [Read More]
Less Economic Integration Within the United States
Over the last several decades, the total amount of trade between the United States and Canada has been increasingly brought to the forefront. Part of the reason for this, is because the two nations share a common boarder that has encouraged both of them to trade more with each other. As time has evolved, this relationship has continued to increase exponentially with the two becoming increasingly interconnected based upon NAFTA. This has helped to fuel large amounts of natural resources that are exported from Canada into the U.S. Where, America has considerable demand for raw materials to meet the needs of: manufacturers, businesses and consumers. (Schwanen, 2005, pp. 309 -- 406) Evidence of this can be seen by looking than the below table, as this illustrates the total amounts of trade between both nations from 1996 to 2010.
Annualized Trade Figures between the…… [Read More]
Latin America is as such seeking to decrease its interregional dependence and develop more relationships with the better developed economies of the globe. It nevertheless remains sensitive to the international economic crisis and the debt crisis in the Euro-zone (Inter-American Development Bank, 2011).
As it has been previously mentioned, the Latin American countries are characterized by specific traits, which make it difficult to conduct integrated analyses. The same can be said about Mexico, where different traits are also observed. Based on these traits, Tecnologico de Menterrey has developed four specific models for regional development. The models, created based on strong theoretical background and adapted to the Mexican realities, refer to the following:
Model 1: Technology Parks for the high value employment to employ high numbers of non-research and non-scientific staffs, but specialized staffs for high-value activities
Model 2: Technology Parks for the attraction and development of business. These entities will…… [Read More]
Economic entities can be influenced by the area they are located in, with the entities positioned in the vicinity of economic blocks like NAFTA or the European Union being advantaged and thus more likely to engage in trade. People in North America and those in Western Europe are advantaged because of their position, meaning that the trade business they get involved in is normally more intense in comparison to the trade performed by economic entities that reside further away from economic blocks.
Security has always been a crucial matter when it came to freight transportation. However, this topic has not been given special attention until the 9/11 events, which marked the beginning of great changes in transportation policies. It previously seemed perfectly normal to check freights for illegal substances, undocumented immigrants, and piracy. Even with that, the World Trade Center events brought forward a new set of security concerns. The…… [Read More]
However, Switzerland has moved very slowly as a nation in accepting new cultures and outsiders. Swiss citizenship is nearly impossible to obtain. The nation is dependent upon a small, closely-knit band of citizen-soldiers for its defense. Socially, women were only given the right to vote in Switzerland in the second half of the 20th century, well after other nations. In other words, an American business manager must be prepared for a slower pace of decision making than he or she is accustomed (20th century, 2011, Swiss orld.org). hile typically American corporate mission statements reflect a 5-10-year framework, in Switzerland, companies take an even longer point-of-view, and are even more resistant to organizational change (Adler 2001: 23).
Certain stereotypes that al-Mart might confront in Switzerland might relate to the perception of Americans as overly focused on optimism and a false sense of teamwork. One common observation of Americans by foreigners is…… [Read More]
Other tools frequently used in this approach are positioning surveys and moving-average trend following trading rules. Fund managers regularly use these patterns to take informed decisions for short-term investments (Exchange ate Forecast, 2010).
Exchange rate risk affects both revenues and costs, which in turn affects a company's marketing, production, and financial decisions (Shapiro, n.d.). If a company's revenues are down then they might find themselves with less money to produce and market their product or service. If a company cannot produce or market their product or service they will probably not remain in business for very long. This is why it is so important to make financial decisions based upon a good model for forecasting exchange rates. A company's bottom line and ultimately their continued success rely heavily on their capability to have enough money to produce products and market them. A company that has no money to manufacture and…… [Read More]
North American Free Trade Agreement
President Clinton signed the North American Free Trade Agreement Implementation Act-NAFTA on December 8th, 1993. Canada and Mexico soon followed suit and the North American Free Trade Agreement became active from January 1st 2004 and thus became the first comprehensive free trade agreement among major industrial nations and a developing a country. (A dynamic macroeconomic analysis of NAFTA - North American Free Trade Agreement -- Economic Perspectives) Thus NAFTA was launched in January 1994, and thereby The North American Free Trade Agreement became the largest free trade area in the world. (Canada and the North American Free Trade Agreement)
NAFTA created the world's largest free trade zone, which had coverage of around 360 million people and an annual investment and trade in terms of C$500 billion. (Key Economic events: 1994- North American Free Trade Agreement (NAFTA): Creating the World's Largest Free Trade Area) This agreement…… [Read More]
Mexico's Trade Strategy
Mexico has pursued a three-dimensional trade strategy perhaps more diligently than even the United States according to Schott (Studer & Wise, 2007). Mexico has been an active participant in multilateral talks since its GATT accession in 1986 and was the host country for the special Summit of the Americas in Monterrey and for the hemispheric trade talks in Puebla. Mexico is perhaps most famous as the instigator of NAFTA as well as many other FTAs with countries around the world including key industrial markets such as the European Union (EU, The European Free Trade Association (EFTA), and Japan. In addition, Mexico entered in FTAs with olivia, Chile, Costa Rica, El Salvador, Guatemala, The G3 (Colombia, Mexico, and Venezuela), Honduras, Israel and Nicaragua during the period January 1995 to June 2001 (Schott in Studer & Wise, 2007). It is important to emphasize that Mexico has many more FTAs…… [Read More]
Canada International Trade
International trade accounts for a dominant share of the Canadian economy, led by exports of natural resources. Exports accounted for approximately 25% of Canada's GDP in 2010. Agricultural, energy, forestry and mining exports accounted for about 58% of total exports. Machinery, equipment, automotive products and other manufactured goods accounted for a further 38% of exports. The United States is by far its largest trading partner, accounting for about 75% of exports and 51% of imports (followed by China 11% and Mexico 5%.) Canada's combined exports and imports ranked 8th among all nations. Canada recorded a positive balance of trade overall in 2010: exports C$407B and imports C$ 406B. Canada enjoyed a substantial positive balance of trade with the United States in 2007 and 2008, but slipped into the red in 2009 and 2010. (See Exhibit 1) (CIA, 2010)
Among the world's wealthiest nations, Canada has the ninth…… [Read More]
Student please request a revision. I was waiting tohear back from you on answer to my questions. Will go ahead in next 20 minutes and finish paper as is. And send it to you then.
At present, although the United States and Mexico are embraced in an atmosphere of cooperation that is unprecedented, there are still potential areas of conflict that could chill relations between the two countries if they are not handled with great diplomacy. The tricky part here for President Bush, Mexican President Fox and other leaders is that these issues are more about perception than they are based on reality. The two major issues that come up the most are directly related to one another. These two issues, trade and immigration also touch on other politically sensitive issues which include environmental concerns, worker conditions, economic parity, political freedom, and governmental control.
ow, nearly nine years afters its…… [Read More]
People and services are not easily moved among the various countries. Although securing work and permits in the United States for Mexican and Canadian immigrants, NAFTA has also caused considerable concern in terms of legislation.
This is particularly the case in Canadian lawmaking. Several disputes resulted from NAFTA trading activities in the country. Such disputes for example include gasoline additives and possible related health concerns and nerve damage (Weintraub, 2004). Canada was also engaged in a long dispute regarding a 27% duty on softwood imports to Canada. This lasted for years before it was finally resolved in 2006. Significantly however, the decision was not ratified by either Canada or the United States (Weintraub, 2004). According to the U.S. Court of International Trade, imposing the duty was contrary to the United States law.
Other problems include the fact that Canada has lost more than 10,000 companies to foreign takeovers since NAFTA…… [Read More]
The State is just taking back its rightful property under the contractual obligations of the agreement signed between the host State and the foreign investor who' assets are being seized in the expropriation. Another cause for direct expropriation is the concept that the State will in some way gain financially, socially, or economically from the expropriate assets beyond their value of compensation. If a particular investment can generate more positive results in the hands of the State, it is legal to file expropriation proceedings if the full value of compensation is covered as determine by an international tribunal.
In the European Union, direct expropriations are most common. Based on a common peace and favorable diplomatic relations between the countries within the European Union, there is little need for many investors to worry about unlawful and forceful expropriation, as seen in developing or communist nations. Some investors may invest within a…… [Read More]
This, of course, would represent one aspect of the resentment served to Salinas. The other aspect would be the significant impact of the economic crisis and the continued devaluation of the Peso. These things reflected on the ineptitude of a party seldom challenged as it should have been.
To most, the failures effecting the whole of the nation had marked the need for a hastening of democratic reform, which would in turn reflect quite negatively on the candidacy of the PRI candidate. In an article dated to 1988, it was characterized thusly, with report stating that "the Institutional Revolutionary Party on Sunday designated Carlos Salinas de Gortari, the budget and planning secretary in the present government, to be its presidential nominee. Getting the nomination is tantamount to being named president. The PRI, as the party is universally called here after its Spanish initials, has ruled Mexico for six decades. As…… [Read More]
nature of U.S.-Mexican trade relations, it is difficult indeed not to think of the statement of Mexican President Porfirio Diaz at the turn of the last century, "Poor Mexico, so far from God, and so close to the United States." For Mexico does continue to seem to occupy a benighted position vis-a-vis its richer and more powerful neighbor to the north, a position that is in no small measure defined and continually recreated by the nature and mechanisms of international trade between the two nations. This paper examines the nature of the trade relations between the United States and Mexico in the light of several classical economics theories and models as well as in respect to recent developments in the wake of the 1992 signing of the NAFTA accord and the last decade's worth of increasing globalization.
Economic Theories and Models
We begin by discussing and summarizing some of the…… [Read More]
International Business and the egions
In the era of globalization, the primary scope of agencies, institutions and players across the world seems the creation of a free international market place. The efforts so far made have however been insufficient to create such a market place, but impressive successes were observed in terms of the creation of regional market places. In other words, the modern day economic society has managed to support and concretize its efforts in the direction of regional economic development.
egional economic integration
egional economic development is virtually understood as a context in which countries in the same global region direct their endeavors in the sense of creating an economically integrated region. They virtually focus on free trade and migration of goods, people, commodities, technologies and capitals and they strive to reduce the barriers between the respective economies. Jacques Pelkmans (2006) defines economic integration as "the elimination of…… [Read More]
The cost to its economy is greater than just lost opportunity as it extends to further damage the credibility of a relationship which the public views as suspect, in accordance with Campbell's estimation.
The oversight of international regulation is undertaken by the orld Trade Organization, which brings the globe's free trade partners together to broker affairs of economic cooperation or contract. However, this has proved to be an agency with too diluted a focus to effectively maintain balance between such partners as Canada and the U.S. Campbell addresses most of the regulatory differences between the two nations as being historical and incidental in some ways, indicating that perhaps the inconsistencies are simply in need of concentrated attention. This notion accounts for the 2005 launch of a Trilateral Regulatory Commission, partnering Canada, the U.S. And Mexico in an agreement to acknowledge a central forum for regulation of trade discrepancies. Though its…… [Read More]
Trade Act of 1974 on Euro exchange rates?
Free Trade has been a key agenda for the past three presidents. In an expanding global market, tariffs and trade policies are more important today than they have been in the past. More and more countries are forming alliances such as the North American Free Trade Agreement (NAFTA), the Asian Alliance, and the European Union (EU). These trade agreements are meant to level the playing for all countries, both industrialized and emerging countries.
President Bush's trade policy is aimed at helping to generate American jobs, open markets to American products, and provide economic growth. Sometimes massive increases in imports can have a devastating effect on U.S. industries. [This has been the case for the U.S. steel Industry and is the issue addressed in Section 203 (B) (1) of the Trade Act of 1974. Foreign steel makers have had the luxury of government…… [Read More]
It is important to note, from the onset, that there are many commercial benefits that our company could reap by expanding internationally. Thus, the expansion into Mexico is not only timely, but also well considered. However, in engaging in the said expansion, the company ought to be aware of the pertinent aspects of both the U.S. and Mexican law. It is with this in mind that this memo highlights the most likely compliance issues or concerns in as far as the various aspects of law and ethics specific to Mexico are concerned.
Pertinent Aspects of U.S. Law
There are a number of laws and certain legal provisions specific to our expansion into Mexico. Key amongst these include, but they are not limited to; USMCA (which replaced NAFTA a month ago), Customs and Border Protection (CBP) laws, and laws relating to engagement in corrupt practices and money laundering.…… [Read More]
The biosphere consists of all living organisms on the planet. The atmosphere, hydrosphere and lithosphere function collectively to provide he environment which sustains the biosphere. These four spheres interact to create ecological systems. These ecosystems, as they are called, are groups of organisms and the nonliving environment which they exist in.
In the process of living and working in an area, people modify the landscape to suit their purposes or tastes. These are called cultural landscapes. Many geographers maintain that the entire surface of the earth constitutes a cultural landscape, as humans have changed the face of the planet to such a great degree. Some geographers also put forth environmentalist theories, which emphasize the role of the environment in human life. The interaction between humans and the environment is a circular effect- environment affects human life and culture, while humans alter and transform the environment. Geographers have studied the ways…… [Read More]