NAFTA Essay Example | Topics and Well Written Essays - 750 words

NAFTA - Essay ExampleAn understanding of the economic cause and the benefits of this agreement is important for those personnel who are to be stationed in near shore positions located in Mexico or Canada.The first benefit for large American based companies who choose to deploy a share of their operations in Mexico or Canada is the economic advantage of lowered recruitment and Human Resource address for skilled and unskilled labor as compared to the economic market in America (Wikipedia, 2006). Additionally, American operations managers and executives of companies working in Mexico have the advantage of a higher standard of living in Mexico since the hail of living is lower (World Bank Group, 2001).After a decade of free wiliness with America, the Mexican saving like the Canadian economy has become very closely linked to the American economic system. NAFTA consequently is essential for Mexicos continual growth and economic survival as a trillion clam plus economy. With NAFTA t he economy of Mexico has experienced booms but there is still some controversy about the application of the rules under NAFTA (Wikipedia, 2006).The opposition mostly comes from the economic crisis which Mexico went under soon after the signing of the treaty in 1995. However, the data collected by the World Bank and new(prenominal) economic agencies show that NAFTA has been mostly skilful for the economy of Mexico since the poverty rated have gone down and economic improvement has resulted in greater think over opportunities for the Mexican people. Real incomes and salaries have been on the rise and if the government continues to invest in education and other public projects for development Mexico could become one of the fastest growing economies of the world (World Bank Group, 2001).While the trade between the countries has been liberalized like the European Common Market, the national sovereignty of nations has not been changed and the laws for