Pros And Cons Of Nafta

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Trade Organizations
NAFTA
The North American Free Trade Agreement, NAFTA, created a trilateral trade block in North America. It is between the United States, Canada, and Mexico. It was put into place on January 1st, 1994 to increase exports, investments, jobs, and trade among the three countries involved. It lowered tariffs, increased real wage, and created jobs. NAFTA has benefits, but it also has cons; while it lowered tariffs, it did not lower regulations, and Mexican workers benefited less than expected. In my opinion, I believe that NAFTA was a good thing. Although there are some cons to it, the good outweighs the bad since it increased investment, real wages, and created job opportunities.
European Union
The European Union, EU, is a unique political and economic agreement between 28 countries in Europe. Countries involved include: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxemburg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. Overall, the main purpose of the EU is to “promote social and economic growth, develop an area of freedom, security, and justice, and maintain and build and improve European law”. There are two sides that each country must consider before entering the EU. Some pros include free trade, no tariffs, citizens can move freely throughout member countries, a common currency, and regulations so that larger countries do not have the power to control the smaller countries. While these are all very beneficial factors, there are also some cons to consider. There is no common language, making communication a hassle. Also, requirements to ...

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...cial because it provides more of a variety of goods and services to consumers, protects domestic industries and employment, and prevents “dumping”. While it is beneficial in these ways, it also has cons. It raises the price of goods, damages the trading system and other countries retaliate, which in turn hurts the import and export sections.
MERCOSUR
The common market of Latin America, also known as MERCOSUR, was created to advocate the free movement of goods, services, and people among the states that are a part of the organization. The countries that are fully involved are Argentina, Brazil, Paraguay, and Uruguay. Other countries that don’t have full voting rights or complete access to the market’s full members are Chile, Bolivia, Colombia, Ecuador, and Peru. These countries don’t have to impose a common external tariff. Paraguay was suspended as a full member.

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