According to Investopidia.com free trade is defined as “the unrestricted purchase and sale of goods and services between countries without the imposition of constraints such as tariffs, duties and quotas.” This style of trade differs from fair trade which is a way of buying and selling products that makes certain that the people who produce the goods receive a fair price. There are a lot of arguments over which style of trade is better, and like almost every comparison there are pros and cons to each type. Some pros for free trade are that it lowers the cost of goods and services because businesses no longer have to pay taxes and tariffs in order to import or export their products. Many people also believe that free trade in the long run
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Free trade also allows foreign industries to do business cheaply, which in turn makes it harder for developing countries to promote their own industries. A good example of free trade in today’s world is the North American Free trade Agreement (NAFTA). It has been over 20 years now since NAFTA created the world’s largest free trade area in 1993. NAFTA was created to ease restrictions on commerce between the United States, Canada and Mexico by providing duty-free trade on multiple classes of goods, and introducing new regulations to encourage cross-border corporate investment. In this paper I will discuss the history of NAFTA and the impact that it has had on the three countries involved. I will answer the question; has NAFTA lived up to its high …show more content…
They have seen benefits from U.S. investment in automotive production. They have seen Increases in oil exports to the U.S. and the rest of the world. In addition, there has also been an Increase in the shipment of beef, wood, paper, and other agricultural products to the U.S as well as the export of mining and mineral products. However, because of US imports, Canada has seen some losses in processed foods and steel production. Cities right by Detroit, such as Windsor and Ontario, have profited. They have done well because on both sides of the border auto parts and assembly facilities have developed. Other parts of Canada such as the western and eastern parts have seen benefits from the increased traffic going through their ports. Though U.S. investment Canada has also seen higher-paying jobs in a lot of industries. This increase in higher-paying jobs has expanded the Canadian middle class as well as provided jobs for immigrants who are currently living in Canada. The level of secondary education has also increased in the population. So overall I would say that NAFTA has affected Canada in a pretty positive way. Now when talking about NAFTAS effect on the US it becomes a lot more complicated, because there really are a lot of economic winners and losers. Positive effects vary based on the size, industry, and location of a company. Some industry’s that have been affected positively include the planes, trains and
Free trade also allows foreign industries to do business cheaply, which in turn makes it harder for developing countries to promote their own industries. A good example of free trade in today’s world is the North American Free trade Agreement (NAFTA). It has been over 20 years now since NAFTA created the world’s largest free trade area in 1993. NAFTA was created to ease restrictions on commerce between the United States, Canada and Mexico by providing duty-free trade on multiple classes of goods, and introducing new regulations to encourage cross-border corporate investment. In this paper I will discuss the history of NAFTA and the impact that it has had on the three countries involved. I will answer the question; has NAFTA lived up to its high …show more content…
They have seen benefits from U.S. investment in automotive production. They have seen Increases in oil exports to the U.S. and the rest of the world. In addition, there has also been an Increase in the shipment of beef, wood, paper, and other agricultural products to the U.S as well as the export of mining and mineral products. However, because of US imports, Canada has seen some losses in processed foods and steel production. Cities right by Detroit, such as Windsor and Ontario, have profited. They have done well because on both sides of the border auto parts and assembly facilities have developed. Other parts of Canada such as the western and eastern parts have seen benefits from the increased traffic going through their ports. Though U.S. investment Canada has also seen higher-paying jobs in a lot of industries. This increase in higher-paying jobs has expanded the Canadian middle class as well as provided jobs for immigrants who are currently living in Canada. The level of secondary education has also increased in the population. So overall I would say that NAFTA has affected Canada in a pretty positive way. Now when talking about NAFTAS effect on the US it becomes a lot more complicated, because there really are a lot of economic winners and losers. Positive effects vary based on the size, industry, and location of a company. Some industry’s that have been affected positively include the planes, trains and