Foregin Investment

Foreign Investment

At the start of the January 1994 , the government of United States of America , Canada , and Mexico have officially implemented the establishment of the North American Free Trade Agreement . This trade agreement between the said three economically competitive nations is mainly focused on equally distributing the concept of trade in both the aspect of import and export of generally all available economic goods and resources . This agreement is generally characterized by the gradual elimination of the burden of trade tariffs on resources and the migration and travel limitations between

the said three nations . In this aspect , America , Canada and Mexico can freely transport and exchange economic goods and products with each other thus strengthening their economic condition and diplomatic relationships

The NAFTA has indeed shown many advantages that are generally felt with even only a year since its implementation . One of which is the significant increase on the trade episode between the three involved nations . Another is the boom in the industrial sectors of the involved nations because of the increase inflow and outflow of resources and products mainly on the sector of automobile and auto parts industry . In addition , the cultural aspect of the tri-nation party has also improved giving way to the societies of bilingual and trilingual cultures Indeed , the said agreement has serve most of its purpose

However , the NAFTA has also shown different problems and controversies on its implementation . Most of its controversies can actually be rooted to the literal nature of the agreement . In addition , some local industries within the three involved nations have suffered severe challenges but this mainly rooted on the internal problems of its respective country . For example , the agriculture of Mexico was jeopardize however , this is not due to the agreement but because of industry 's inability to compete against that of the other nations

If generally considered though , the North American Trade Agreement can actually be interpreted to be an advantageous diplomatic and economic dialogue between the three involved nations wherein each of them will actually benefit in the mentioned aspects . Thus , NAFTA can be considered as a beneficial and productive cooperative agreement between the three nations

Bibliography

Gianaris , Nicholas V (1998 . NAFTA . The North American Free Trade Agreement and the European Union . Praeger Publishers . Westport , CT America . Pp 17-40

Hufbauer , Gary Clyde Schott , Jeffrey J (1992 . North American Free Trade : Issues and Recommendations . Institue for International Economics Washington , DC

Wikipedia (2007 . North American Free Trade Agreement . Wikipedia Foundation , Inc . HYPERLINK "http /en .wikipedia .org /wiki /North_American_Free_Trade_Agreement http /en .wikipedia .org /wiki /North_American_Free_Trade_Agreement January 29 , 2007...