NAFTA
(North American Free Trad Agreement)

NAFTA

• No import taxes on goods
• Shipped from Canada, Mexico
• And the US, from one another

PARTNERS INVOLVED

• Canada
• Mexico
• U.S.A

ADVANTAGES

• Positive economic growth
• Rapid growth of non urban areas.
• Increas in trade

DISADVANTAGES

• American jobs move to lower costing Mexico
• Mexican farmers where put out of business
• Factories threatened to move to Mexico.
• Kept workers from joining labor unions.
• Suppressed wage growth.

DISADVANTAGES CONTINUE

• Threat to close factories in Mexico
• maquiladora program: US employing
• Mexicans next to the border to assemble
• Goods for cheep. (No labor rights. Girls took
• Pregnancy test when applying)

MULTILATERAL OR UNILATERAL?

• Multilateral (trilateral)

LOWER TRAID BARRIERS

• In 1993 NAFTA lowered the triad
• Barriers between Mexico, Canada and
• The United States.

GENERAL AGREEMENT ON TARIFS AND TRAID

• (GATT) Is a mutual agreement
• Regulating International triad.

BENEFITS OF NATT

• Reduces tariffs and other triad
• Barriers.

MARSHALL LAW

• After WW2 America helped
• Rebuild Europe

CANADA

• Canada is Americas number
• 1 trading partner.

INTERNATIONAL TRADE AGREEMENT

• An agreement between at least two
• Countries to reduce trading barriers

EXCHANGE RATE

• Appreciation: currency increases in value
• Depreciation: currency decreases in value

BALANCE OF TRAID

• The relationship between a countries
• Imports and exports.

TRAID SURPLUS

• A countries exports exceed it's
• Imports.

TRAID DEFICITS

• Imports exceed exports,
• Money starts to be lost.

THE US IS IN TRAID DEFICIT

• The US imports more then it exports
• The uses is in debt 43,433,979,896,641