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    regional integration

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    Scenario:

    You are a middle-level manager with a company that markets a line of personal and fabric care products. The American market for soap and detergent has always been dominated by name brand manufacturers, such as Procter & Gamble (TideTM), Colgate-Palmolive (AjaxTM) and CloroxTM. In fact, your market research shows that the American market is saturated with these products. You are convinced that, if your company is to grow in the future, it must aggressively seek international markets.

    The company will be sending representatives to a trade conference in Hong Kong in several weeks. You see the conference as an opportunity for your company to expand into the rapidly growing Southeast Asia market. At the very least you hope to be able to identify the countries that have adopted policies that make them receptive to foreign trade and investment; with a little luck, you may even be able to find a good location for a detergent plant that your company wants to build in the region.

    In addition, your company is considering plans to purchase an interest in retail store chains in one or more of the European Union (EU) nations. But before senior managers are prepared to consider the investment, they would like to look at how other American companies have fared when buying European retail chains.

    You asked senior management to allow you to assume the role of international marketing strategist and they granted your request. Now, you need to research, analyze and present international marketing opportunities for your company.

    Task -

    In 1994, when the North American Free Trade Agreement (NAFTA) between Canada, Mexico and the United States went into effect some politicians and economists predicted that it would result in the wholesale loss of American jobs to Mexico.

    Discuss the effect NAFTA has on trade between the three member nations in the years since it was adopted? Then talk about the success or failure of the Agreement

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    https://brainmass.com/business/NAFTA/regional-integration-140345

    Solution Preview

    Let us start with the benefits of NAFTA on its three member nations.

    Implementing the North American Free Trade Agreement (NAFTA) has had a positive affect on the economies of the US, Mexico, and Canada. NAFTA has allowed the free flow of goods between the three countries. Jobs have been created in all three countries under NAFTA. NAFTA has allowed the US be more competitive in international markets.

    The US, Canada, and Mexico are able to sell their goods to each other without any tariffs on those goods. Products that were not allowed in some of the countries are available without restriction. In increased flow of products are helping US markets. "Arizona's exports to Mexico and Canada have doubled, including more than $1.5 billion in computer and software exports to Mexico in 2001. Arizona's agricultural exports to Mexico have also increased. (Arias, 2005)" Increased trade also leads to more jobs.

    Since the inception of NAFTA, new jobs have been created. The agreement allows each of the countries to focus on their competitive advantage industries. "Industry Canada has estimated that 15,000 jobs are created for every billion dollars in exports (Except for a few blips, 2005)." In addition, NAFTA "has helped support the creation of an additional 2.9 million jobs, for a total of more than five million jobs as a result of trading with the U.S. (Except for a few blips, 2005)."

    With the increase in globalization, it is increasingly important to be competitive in international trade. NAFTA allows U.S. ...

    Solution Summary

    Discuss regional integration and analyze future prospects for integrated regions

    $2.19