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    Nafta

    Uploaded by

    Dr. Babar Ali Khan

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    © All Rights Reserved
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    Nafta

    Uploaded by

    Dr. Babar Ali Khan
    14 views13 pages

    Copyright

    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
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    Download as ppt, pdf, or txt
    14 views13 pages

    Nafta

    Uploaded by

    Dr. Babar Ali Khan

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 13

    NAFTA, the North American Free Trade Agreement,

    was signed by the United States, Canada, and


    Mexico.

    NAFTA was signed in


    1993 and went into
    effect on January 1,
    1994.
    NAFTA was written to create a Free Trade Area in
    North America.
     “Free Trade” means that countries may freely
    trade goods with each other without having to
    pay a tariff (tax) on those goods.
     In other words, “free trade” means no trade
    barriers.
    The purpose of the agreement is to:
     Allow free movement of goods and services
    among the countries.
     Promote competition in the free trade areas.
     Protect the property rights of people and
    businesses in each country.
     Be able to resolve problems that arise among the
    countries.
     Encourage cooperation among countries.
    Most economists agree that the agreement has been
    good for the countries involved.
     Free trade increases sales and profits for Mexico, Canada
    and the U.S.A., thus strengthening their economies.
     Lack of tariffs has allowed Mexico to sell its goods in
    the USA and Canada at lower prices. This makes
    Mexican products more competitive in these markets and
    increases Mexico’s profits as it tries to develop its
    economy.
     Free trade is an opportunity for the U.S. to provide
    financial help to Mexico by making jobs available in
    factories located there.
    a. “NAFTA Members
    Prepare for Picnic!”

    b. “NAFTA Members
    Graciously Share
    Business Ventures!”

    c. “NAFTA Members
    Cover Up Conspiracy!”

    d. “NAFTA Members Vie


    For Business!”
     Free trade has caused more U.S. jobs losses than
    gains, especially for higher-wage jobs.

    ›Factories, called
    Maquiladoras, are
    built on the Mexican
    border and workers
    are hired there to
    make goods at a much
    lower wage than
    workers would be paid
    in the U.S.A.
     Minimum Wage
    Mexico - $3.40 per day vs. US - $5.15 per hour
     Example: Hourly compensation costs for
    production workers in manufacturing
    Mexico - $1.21 vs US - $17.70
     (Global Trade Watch, The NAFTA Index,
    October 1, 1998)
     These factories make many types of products.
     3 Day Blinds •Honda
     20th Century Plastics •Honeywell, Inc.
     Acer Peripherals •Hughes Aircraft
     Bali Company, Inc. •Hyundai Precision America
     Bayer Corp./Medsep •IBM
     BMW •Matsushita
     Canon Business Machines •Mattel
     Casio Manufacturing •Maxell Corporation
     Chrysler •Mercedes Benz
     Daewoo •Mitsubishi Electronics Corp.
     Eastman Kodak/Verbatim •Motorola
     Eberhard-Faber •Nissan
     Eli Lilly Corporation •Philips
     Ericsson •Pioneer Speakers
     Fisher Price •Samsonite Corporation
     Ford •Samsung
     Foster Grant Corporation •Sanyo North America
     General Electric Company •Sony Electronics
     JVC •Tiffany
     GM •Toshiba
     Hasbro •VW
     Hewlett Packard •Xerox
     Hitachi Home Electronics •Zenith
    Good or Bad?
    United States Mexico
     They can move their factories to Mexico  They would not like foreign owned
    and ship the goods to the US with no factories because they would create
    tariffs. competition and hurt Mexican owned
     They would not have to pay the workers businesses.
    in Mexico as much as in the United  Maquiladoras would provide jobs for
    States. Mexicans, but the profit made by
     They would be able to sell their product maquiladoras would go back into the US
    for cheaper, but still make a good profit economy, not into Mexico’s
     Many American factory workers lose  It would provide a job in a country where
    their jobs because the owners move the there are not enough jobs
    factories to Mexico. American factory  However, the wages are very low and the
    workers cannot move to Mexico to keep working conditions are not good
    their jobs.  Building factories creates pollution. An
     Goods made in Mexico would cost a lot environmentalist would want to make
    less because labor is cheaper there. sure that Mexico had laws to protect the
    environment.

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