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Ratification of the North American Free Trade Agreement

Debate the ratification of the North American Free Trade Agreement. Discuss the effect of country factors on the decision of where to locate production?

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NAFTA has made it possible for each country to reap the benefits of considerable growth due to the elimination of trade restrictions between the countries. U.S. exports alone have risen drastically due to NAFTA, and by establishing free trade among the U.S., Mexico, and Canada, it has not only encouraged growth from production, but has also increased foreign direct investment between the three countries. When governments eliminate barriers, which is what happened in this case, it establishes a plan of free exporting and importing that adds to a degree in the economy above the constraints that it has imposed. With any free trade, there are costs. The main issue is that as trade barriers and tariffs are eliminated, it puts countries at a ...

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The solution discusses the effect of country factors on the decision of where to locate production. It debates the ratification of the North American Free Trade Agreement.

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