1 answer

The United States has entered into trade agreements with other countries in order to set rules...

Question:

The United States has entered into trade agreements with other countries in order to set rules and expectations to increase trade and commerce. Research NAFTA. How the deal you chose impact or will impact foreign trade. What were the benefits and any negative consequences from entering these types of trade agreements?

Analyze the potential economic impact on different groups for the different types of market interventions.


Answers

(NAFTA) North American Free Trade Agreement is the have different people have different aspect some say seen as good for the U.S. but partisans differ widely on its impact. As Mexico prepared to host the 5th round of negotiations over the 23 year old North American Free Trade Agreement, most Americans around 55 % say that the pact is good for the united states while just a third 34 say it is bad.

As per Pew Research Center survey conducted oct 25-30 among 1504 adult some say that Mexico or Canada have more benefit more from the agreement than the U.S.

Republicans say the trade pact is bad of the U.S. and that it has benifited Mexico in particular, more than the U.S. in recent years partisans have moved apart in their assessments of free trade agreements generally as republicans have grown more negative in their views and opinions about NAFA today reflect this partisan dynamic.

The deal had a modest but positive impact on U.S.

GDP of less than 0.5 percent or total addition of up to $80 billion dollars to the US economy upon full implemention or serveral billion added growth per year.Due to NAFTA auto manufacturing get the benefit. NAFTA estimate that some fourteen million jobs rely on trade with Canada and Mexico while the large number of export related job created annually by the pact.

Economists largely agree that NAFTA has provided benefits to the North American economies due to this regional trade increased sharply. Cross boundary investment has also surged with US foreign direct investment stock in Mexico it will increase the investment opportunity and it will help in increase in the GDP rate will help in techonolgically storng.

Inspite of benefits the negative consequences from entering these types of trade agreement will tease out the deal's direct effects from other factors, including rapid technological change, expanded trade with other countries such as china and unrelated domestic development in each of the countries, With this some workers and industries facing painful disruptions as they lose market share due to increase competition and others gaining from the new market opportunitites that were created. Due to trade agreement the investment done inside the US by foreign trade will take the currency and due to that currecny in long run economy is getting week year by year.

Due to NAFTA the different type of market get benifited and affected due to this the market of auto manufacturing company will get more benifit and the service sector company will also get benefit they provide large number of job opportunity the sector affect due to this NAFTA is the small and domestic sector due to NAFTA the competition is created in the market and small sector need large number of investment for that.

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