Discuss how the US, Canada, and Mexico economies benefited from NAFTA.© BrainMass Inc. brainmass.com June 4, 2020, 4:46 am ad1c9bdddf
NAFTA, the North American Free Trade Area, is a regional free trade area. This is like a subset of WTO. WTO is promoting free trade among countries worldwide.
The objective of NAFTA is to remove, or at least minimize, all trade impediments or barriers, except the natural barriers. Trade barriers are for example tariff and also non-tariff barriers (NTB). Tariff is import tax impose to foreign goods coming to the country. NTB is barriers other than tariff, such as through ...
The U.S., Mexico and Canada will benefit from NAFTA by removing trade barriers among them. Resources will be efficiently allocated. Each country will produce what they do best and trade among them. Eventually all countries will be better off in the sense that factors of production are paid better and consumers can consume more goods and services cheaper.