The European Union’s trade regulation, set between the countries that are within the EU, entitles all the countries within the EU to trade without any barriers in place this affects all member states. However, NAFTA on the other hand is strictly an agreement that is set between Mexico, United States, and Canada. NAFTA stands for North American Free Trade Association; this had been created in the year 1988. One of the main points that will be covered in this assignment will be how these organisations are important to businesses that trade internationally and what affects they have for them. European Union’s regulation of trade makes it easier and simpler for EU nations to trade with each other. As well as this, it enforces laws on the environment,
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The difference between NAFTA and the EU is that NAFTA is purely an agreement however; the EU is a political entry. These systems both encourage businesses and nations to work together to increase trade within the world. Both of these unions are what makes a part of the world trade bloc and play a very big part of the trade negotiations that take place in the world. Without these unions trade would be very difficult as countries would not know what barriers and tariffs that will need to be set as well as that businesses will be paying lots of taxes when importing and exporting goods meaning that profits will not be as high as they can be. (Stiglitz and Contributor, 2010). Businesses would struggle to trade and set agreements if the unions did not exist. Overall, both unions have the same aim and goals, which is to help the economy and create a bond between all states to make sure that they can work together. Both unions have a good impact on the economy as they increase it. However, they also have many differences with operations as well as their systems. The European Union is far ahead compared to NAFTA the European Union had expanded whereas NAFTA has not. The European Union has a say in the world trade as they have at least 20 member states that consist in the European Union so this allows them to have a say in the world
The difference between NAFTA and the EU is that NAFTA is purely an agreement however; the EU is a political entry. These systems both encourage businesses and nations to work together to increase trade within the world. Both of these unions are what makes a part of the world trade bloc and play a very big part of the trade negotiations that take place in the world. Without these unions trade would be very difficult as countries would not know what barriers and tariffs that will need to be set as well as that businesses will be paying lots of taxes when importing and exporting goods meaning that profits will not be as high as they can be. (Stiglitz and Contributor, 2010). Businesses would struggle to trade and set agreements if the unions did not exist. Overall, both unions have the same aim and goals, which is to help the economy and create a bond between all states to make sure that they can work together. Both unions have a good impact on the economy as they increase it. However, they also have many differences with operations as well as their systems. The European Union is far ahead compared to NAFTA the European Union had expanded whereas NAFTA has not. The European Union has a say in the world trade as they have at least 20 member states that consist in the European Union so this allows them to have a say in the world