...Integration for and Against Articles NAFTA (North American Free Trade Agreement) is a free trade agreement involving Mexico, Canada, and the United States. NAFTA is the most limited of the free trade unions. NAFTA is restricted to eliminating tariffs, quotas, and other trade impediment among Canada, Mexico, and the United States. NAFTA has advantages and disadvantages of regional integration, and also showing how it persons would favor, and be against it. Integration and agreements made will reduce tariffs barriers that are associated with trades of good, services, and the factors of produced goods between countries (Hill, 2009). Advantages Between the two countries Canada and the United States NAFTA has eliminated most of the tariffs, which are incorporated in the trades of the products. One of the main advantages is that it will provide a higher quality of goods, and services to consumers in all countries at a lower rate. In January 1994 NAFTA became the biggest trade bloc in the world in relation to GDP (Gross Domestic Product) all, while becoming a key force in escalating the agricultural trade between Canada and the U.S. Trades between Mexico, Canada, and the U.S. have gotten better throughout the life of the unification (Free Trade Bloc, n.d.). The advantage of integration regionally is that there are no imposed restrictions on the trade. This will allow countries to focus on the services and produced goods...
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...Economic Integration: NAFTA and Beyond Dr. Igor M. Paramonov, Southern Alberta Institute of Technology, Calgary, AB, Canada ABSTRACT This paper examines various possibilities for future economic integration within and beyond the North American Free Trade Agreement (NAFTA). Previous publications have suggested three potential trajectories including development within the envisioned original structure, deepening, and widening of NAFTA (Clement et al, 1999). It is necessary to revisit these directions while summarizing major developments and new perspectives. Vision and hard work are required for NAFTA to remain one of the most economically competitive regional trading arrangements in the world. In addition to NAFTA, each member nation has pursued its own plans to integrate with countries and regions beyond North America. The most recent developments involve trade negotiations between Canada and the European Union, as well as both Canada and Mexico’s considerations to join the nine countries of the Trans-Pacific Partnership Pact. The United States cooperates with a group of smaller developing economies within the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR). This paper presents ongoing analysis of governmental, academic, and other sources for the purpose of teaching in the field of international business, including the uncommon course of “Business under NAFTA.” INTRODUCTION Is the “Age of NAFTA” over? This is a legitimate question to...
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...Planning Analysis Paper University of Phoenix MGT/448 Kathryn Hayman December 19, 2011 Team C has decided to conduct a country risk analysis for the country of Mexico. The selected business venture is about laptop computers. When it comes to global business ventures there also comes a great amount of risks. In the following paragraphs is an analysis of the following risks; political, legal, and regulatory risks, exchange and repatriation of funds risks, competitive risk assessment, taxation and double taxation risks, market risks, distribution and supply chain risks, physical and environmental challenges to entering and operating in a target market, social and cultural risks, and cyber or technology risks. A description of how these risks would be managed and a summary of the strategic planning process will be explained. Mexico has a moderate political risk according to AM Bests Country risk report. Mexico ties with large, developed countries that are very strong has help them in this aspect when it comes to their political risk. NAFTA North American Fair Trade Agreement also helps in this respect since it is now one of the largest free trade areas. This agreement was established between the Unites States, Canada, and Mexico and became effective on January 1, 1994. This alliance has brought economic growth and rising standards to the citizens of these three countries. There are many advantages of NAFTA, being that it has created the world’s largest free trade...
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...Table of Contents Executive Summary 3 Issue Identification 4 Slowing Growth in NAFTA Trade 4 Continuation of NAFTA Strategy versus Expansion into Latin America 4 Taking Advantage of Economic Growth in Asia and Emerging Markets 4 Expanding Overseas 4 Environmental & Root Cause Analysis 5 Slowing Growth in NAFTA Trade 5 Continuation of NAFTA Strategy versus Expansion into Latin America 5 Taking Advantage of Economic Growth in Asia and Emerging Markets 5 Expanding Overseas 6 Alternatives and/or Options 6 Slowing Growth in NAFTA Trade 6 Continuation of NAFTA Strategy versus Expansion into Latin America 6 Taking Advantage of Economic Growth in Asia and Emerging Markets 7 Expanding Overseas 7 Recommendations and Implementation 7 Slowing Growth in NAFTA Trade 7 Continuation of NAFTA Strategy versus Expansion into Latin America 7 Taking Advantage of Economic Growth in Asia and Emerging Markets 8 Expanding Overseas 8 Monitor and Control 8 Executive Summary Since Canadian National Railway Company (CN)’s privatization by the Canadian government in November 1995, CN has not stopped growing its sales, profits, cash flow and, as a result, market value. Privatization and deregulation of the rail industry led to some of CN’s success, but CN had to cut costs and increase revenues. Cutting costs meant reducing workforce and closing or selling unprofitable tracks. It also meant investing in more efficient rail equipment and technology. Increasing revenues required focusing...
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...Regional Analysis of NAFTA January 1, 1994, the United States, Canada, and Mexico entered a trade agreement which removed restrictions on trade between the three countries to encourage free competition, improve investment opportunities, and increase market access. NAFTA has provided some advantages to its members such as the eradication of tariffs, product price reductions, and increased profit margins. By reducing the tariff rate on goods or products, this allows Small and Medium Enterprises (SMEs) to reduce their selling price, thus keeping them competitive with non-NAFTA goods and products sold at a higher price due to imposed tariffs. This also allows SMEs to compete with larger organizations within the regions. Regional integration is a formation of closer economic relations among countries that are geographically in the vicinity of one another, especially forming preferential trade agreements. However, as we can see, regional integration also refers to an outcome, which occurs when present criteria are met. Around the globe, we have seen an increase in the number and depth of regional integration over the last few decades. Over 40% of world trade occurs within regional integration agreements such as the European community, NAFTA, and new or expanded agreements continue to be negotiated (Wayne, 2004). A regional integration agreement represents free trade to the extent that it results in trade creation. This occurs by shifting the production of some good or product...
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...promoting the agreement, ceremonially signed it. The signed agreement then needed to be authorized by each nation's legislative or parliamentary branch. Before the negotiations were finalized, Bill Clinton came into office in the U.S. and Kim Campbell in Canada, and before the agreement became law, Jean Chrétien had taken office in Canada. The proposed Canada-U.S. trade agreement had been very controversial and divisive in Canada, and the 1988 Canadian election was fought almost exclusively on that issue. In that election, more Canadians voted for anti-free trade parties (the Liberals and the New Democrats) but the split caused more seats in parliament to be won by the pro-free trade Progressive Conservatives (PCs). Mulroney and the PCs had a parliamentary majority and were easily able to pass the 1987 Canada-US FTA and NAFTA bills. However, he was replaced as Conservative leader and prime minister by Kim Campbell. Campbell led the PC party into the 1993 election where they were decimated by the Liberal Party under Jean Chrétien, who had campaigned on a promise to renegotiate or abrogate NAFTA; however, Chrétien subsequently negotiated two supplemental agreements with the new US president. In the US, Bush, who had worked to "fast track" the signing prior to the end of his term, ran out of time and had to pass the required ratification and signing into law to incoming president Bill Clinton. Prior to sending it to the United States Senate Clinton added two side agreements, The North...
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...NAFTA (North American Free Trade Agreement) and Its Advantages in Mexico Regional Integration is described as a process in which states enter into a regional agreement in order to enhance regional cooperation through regional institutions and rules. North American Free Trade Agreement was the removal of barriers between Mexico and the United States. It was the phasing out of virtually all restrictions on trade and investment flows. “The expanded trade resulting from NAFTA has raised the United States' gross domestic product very slightly. (The effect on Mexican GDP has also been positive and probably similar in magnitude. Because the Mexican economy is much smaller than the U.S. economy, however, that effect represents a much larger percentage increase for the Mexican economy.)” (The Effects of NAFTA on U.S. –Mexican Trade and GDP, May 2003). Over the years NAFTA has helped Mexico to improve on their exports and imports trading with the United States. NAFTA has had a positive effect dealing with the international investments. This is because some of the restrictions Mexico had on their foreign investment dealing with the ownership of capital. NAFTA also allowed Mexico to do away with tariffs and quotas. This allowed Mexico to become a profitable place to invest, in plants and assembling of products in the United States. NAFTA eliminating the tariffs in Mexico helped to reduce the different license requirements and restrictions on foreign investment. This meant that it would...
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...1. Mexico has always portrayed itself as one of the most pro-trade countries in the world. For instance, we have a free trade agreement with the United States and Canada, and another one with the European Union. We are active members of the WTO, the OECD, the APEC, the Pacific Alliance, and have also signed multiple bilateral agreements with many nations, most of them deemed “strategic”. Answer the next two questions in your own words: a. What are the potential costs and benefits of adopting such a free-trade strategy? The benefits when a country trades freely with other nations, consumers in that country have access to a wider variety of products. Some of these products may not otherwise be available if the consumers were limited to domestically manufactured goods. Or these products may be prohibitively expensive without a free trade arrangement. Also can boost the quality of life along the countries' shared border. This is the case with the Texas-Mexico border. After the creation of NAFTA, the area servicing the transfer of goods between the U.S. and Mexico experienced an economic boom. Five years after the free trade agreement, John Adams Jr., vice chairman of the Industry Sector Advisory Council, noted that this border area was growing economically at a faster rate than any other region on the planet. And the potential costs U.S. exports tend to create jobs in this country, but increases in imports tend to reduce jobs because the imports displace goods that...
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...These are the factors that will determine the extent of the success and its impact on the economy of the host country. So it is the test of the entrepreneur to decide to go to which country and to decide how to go to that country with the different product mix. So it will highly influence the domestic people of the host country and make the company competitive. Keywords: Multiplier Effect, Globalisation, factors affecting Macro Environment Introduction: Canada is known for their highly quality food products worldwide. The Canadian food industry ranges from the farming to the retailing and assembling and includes most of the well- known products that are considered rich in health. The NAFTA agreement between the three countries raises the opportunities for the Canadian entrepreneur to trade freely across the United States of America and the Mexico. The Canadian entrepreneur – Export packers Ltd. has proved its excellence in providing the seafood to the host country and many other countries of the world such as United States, Iceland, Honduras, Philippines, Costa Rica, and Chile. Now the company has planned...
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...trading, it is somewhat unfair to mark this country as the reason for the United States economical situation. Some authors, like Robert Scott, claim that the entrance of China into the World Trade Organization (WTO) has negatively affected the United States’ unemployment rate, the jobs production and its income per capita reduction. In the next pages, the report written by Roger E. Scott entitled: ‘Costly Trade with China. Millions of U.S. jobs with net job loss in every state’ will be analyzed to determine what China has been doing to become the number one exporter in the world, as well as the impact that China’s exporting has had in the United States. It also will be determined how costly it has been to the United States to trade with them; what other factors may have affected the United States and its trading capacity; and what the future implies for the commercial relationship between these two countries. Finally, it will be discussed whether or not the United States should seize other opportunities by creating new free trade blocks with another countries in the world, such as the North America Free Trade Agreement (NAFTA) with Mexico and Canada. Review In 2010, China became the number 1 exporter in the world. However, its inclusion in the international trade world was not easy. Its self-imposed isolation made of China a very unique country in terms of commercialization with other countries. Taking a step back in time, it was not a long time...
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...855 (growth rate: 1.1%); birth rate: 19. /1000; infant mortality rate17.8/1000; life expectancy rate. Solar Photovoltaic Solutions is an American company based in Atlanta Georgia. The proposition of this report will be to export our industry leading solar panels into the Mexican market. This report will provide evidence that there is a business opportunity for our company to assist Mexico with viable alternative energy solutions that are being underserved. Solar Photovoltaic Solutions LLC has identified opportunities in three segments in the country. The research will focus first, on Mexico’s political/ regulatory changes, followed by an economic opportunity evaluation and challenges of doing business in Mexico, Lastly a comprehensive analysis of the photovoltaic market and value chain. Mexico’s political changes have begun with the...
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...in your own words. When you have completed your assignment, name your file Unit 1 Review and include your last name in the file name. (Smith U1 Review) Chapter 1 1.In your own words, define operations management. 2.Explain why business managers should study operations management. 3.Name the 10 decision areas of operations management. Chapter 2 4.Operations managers constantly seek ways to reduce costs while providing value to its customers. “Going global” may reduce costs by using lower priced labor and manufacturing facilities. NAFTA, the North American Free Trade Agreement, is a free trade agreement between Canada, Mexico and the United States. The WTO, World Trade Organization, promotes world trade by lowering tariffs or taxes on the flow of goods among countries and between borders. •Research one of these two trade agreements (NAFTA or WTO). Describe the effects of the agreement on one type of operation or industry here in the USA. 5.Operations management must support the company mission and overall strategy. Define mission and strategy and describe how these two serve different purposes. Chapter 4 6.Forecasting is a critical function in operations management. Explain how demand forecasting affects one different operational system. 7.Briefly describe the qualitative approach of forecasting. 8.Briefly describe the quantitative approach of forecasting. Grading Criteria You will be graded on the accuracy and thoroughness of your responses...
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...Economy and Society Volume 37 Number 2 May 2008: 193Á223 Regional trade agreements and the pursuit of state interests: institutional perspectives from NAFTA and Mercosur Francesco Duina and Jason Buxbaum Abstract Are regional trade agreements (RTAs) carefully crafted projects that systematically advance their member states’ interests or do they instead generate outcomes that frustrate those interests? Works on the most prominent RTA Á the European Union Á have traditionally been split over this question. New research on international organizations parallels that literature. Combining rational choice and historical institutionalism, this article makes a middle-ground case: the limited rationality of national representatives and the complexity of RTAs ensure both the advancement and frustration of national interests. The focus is on shifting national preferences, the unpredictable implications of decisions over time and the pursuit of short-term gains to the benefit of some constituents but not others. Evidence from NAFTA and Mercosur supports these claims while highlighting, in line with recent scholarship, the need to include politics in institutionalist accounts of integration. The conclusion reflects on the findings and explores whether alternative, more flexible designs for RTAs might satisfy more fully the interests of the member states. Keywords: regional trade agreements; rational choice institutionalism; historical institutionalism; NAFTA; Mercosur; international...
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...Country Profile: Mexico Jacey Bennett 20121061 International Business Management MGMT3607 Dr. Dannie Brown Tuesday November 20, 2012 Country Profile: Mexico Mexico is a North American country located south of the United States, north Belize and Guatemala, east of the Gulf of Mexico and west of the North Pacific Ocean. Three main industries in Mexico are mining, manufacturing and tourism. (Encyclopedia of Nations, n.d.) Mexico ranks 14 in the world for its land/water area of 1,964,375 sq km. Natural disasters that may occur in Mexico are earthquakes, volcanos and tsunamis. Mexico’s climate varies from desert to tropical. (CIA, The World Factbook: Mexico, n.d.) The two peninsulas of the country illustrate the changes in the climate from one side of the country to the other. The Baja peninsula is desert like with temperatures reaching 100ºF and above, whereas the Yucatan peninsula is tropical and wet. The Yucatan peninsula contains rainforests and white sand beaches. (World Travel Destinations, Culture and History Guide, n.d.) In recent years, Mexico has rapidly developed its tourism sector, the Yucatan peninsula has grown very quickly. Tourism is the fourth largest source of currency income in the country. (Country Profile: Mexico/economies, n.d) The country’s capital city is Mexico City. The primary language spoken is Spanish but there are an estimated 62 other indigenous languages. Most of the population is Roman Catholic. Mexico is a federal democratic...
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...Analysis of Foreign Direct Investments of North America Kristin Daughdril & William Cassidy Business Administration 418 Abstract Foreign Direct Investment (FDI) is an investment involving a long-term relationship and reflecting a lasting interest in and control by a resident entity in one economy of an enterprise resident in a different economy (UNCTAD). There are two types of FDI, inflows and outflows, which can be used to help determine the investment strategies and economies of countries engaged in FDI. North America has been the source of nearly one-half of all investment and almost three-quarters of the jobs created throughout the globe (Huggins, 442). North America is probably the most important continent when it comes to dealing with FDI. The three main countries of North America, the United States, Canada, and Mexico, all rank in the top 15 of world economies, proving them to be desirable partners in FDI transactions. The trends of FDI discussed in this report will be unparalleled to this information and can lead to some predictions on how future trends of the countries of North America will continue to be superior to that of the other continents of the world. Keywords: Foreign Direct Investment, FDI Inflow, FDI Outflow Foreign Direct Investment is investment of a company located in a different country either by buying a company in the country or expanding its business into the country. FDI can be done for many purposes. Companies may have tax incentives abroad...
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