NAFTA's Affects on the world economy
Since NAFTA is a treaty between the countries of Canada, the United States, and Mexico, most of its affects are only felt on North American economies. Within the economies of the three countries, each has seen much growth since NAFTA has taken effect. In fact, under NAFTA, trade has tripled in North America. Increased competition has occurred between the NAFTA countries as well due to the fact that tariffs are not an issue. With increased competition, each country has seen lower prices and more choices for goods.
NAFTA also has some indirect affects on other countries around the world as well. Because trade is free between the North American countries, other countries that have to pay tariffs are at a disadvantage. However, most other countries have lower labor costs, and therefore can produce goods for very cheap prices. In fact, it's so cheap in some countries that the tariff hardly affects them. Here is an illustration to explain this paragraph:
NAFTA also has some indirect affects on other countries around the world as well. Because trade is free between the North American countries, other countries that have to pay tariffs are at a disadvantage. However, most other countries have lower labor costs, and therefore can produce goods for very cheap prices. In fact, it's so cheap in some countries that the tariff hardly affects them. Here is an illustration to explain this paragraph:
NAFTA Countries:
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Most Other Countries:
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