Miss Essay

3755 Words Oct 30th, 2012 16 Pages
This essay will explore the nature of NAFTA and its effect on regional integration as well as state economies from several perspectives. In 1993, the United States, Canada and Mexico signed the North American Free Trade Agreement to achieve the higher level of regional integration. This NAFTA not only concerns the removal of trade barriers, but also aims to promote the movement of capital. Firstly, this essay will explain the evolution of NAFTA and its successful influence on economic integration. Furthermore, this chapter will provide the criticism on the influence of NAFTA. Secondly, this study will discuss the impact of NAFTA on regional integration, particularly economic integration. Then, this essay will propose the
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Since the export oriented policy and development of foreign market are considered as two of the most significant policies of Mexico to recover its economy, Mexico respectively involves the bilateral free trade agreement with the United States and Canada to exploit the potential of economic growth. Thus, the United States and Canada also obtain the benefits of free trade resulting from NAFTA. However, several scholars, such as Krugman & Hanson (1993) and Rees, Hathcote & Dyer (1993), suggest that compared with the United States and Canada, more gains is predicted for Mexico.
Referring to debate on NAFTA, in the past eighteen years, there are much empirical evidence for evaluating the effect of NAFTA on industries, employment, trade and others. In the one hand, the execution of NAFTA positively influences the trade situation among members. For instance, Bejan (2011) finds that the signing of NAFTA improves the effectiveness and performance of goods and service movements, and also contributes to the elasticity of substitution. In this essence, these changes resulting from the implementation of NAFTA can benefit consumers and communities. Furthermore, the effect of NAFTA on environment is considered as one of the most significant debates whether the free trade benefits environment. Several researchers, such as Copeland & Taylor (2004), argue that free trade is not entirely responsible for environmental pollution, since there are more factors influencing

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