Mgmt 4141v – International Marketing - Nafta : Success or Failure?

NAFTA : ¿Success or Failure?

Maricela Puente Castillo

MGMT 4141V – International Marketing

Walden University

José Lopez

8th May, 2016

The North American Free Trade Agreements is an international treaty between USA, Canada and Mexico in which they would be commercial partners and make easier all international operations among their habitants, and facilitate the paper work on doing business with the members of this agreement.

A lot has been said about this agreement, because so much people and economic agents had won and others lost, such as the American citizens due the new outsourcing method that surge from the agreement, because of cheap labor and the facility of translating their factories to Mexico, they lost their jobs, but in the other hand Mexico had reduced its unemployment rate, and companies had reduced costs, but sweatshops also took a higher place in this area.

Companies increased the rate of exportations to the members of the agreement, and also facilitated buying or selling more units, or the mere process of purchase. But disadvantages and advantages surge from this agreement, even though this was contemplated it was seen that it will bring more benefits than the negative consequences it will cause, because in the end not all economic agents will be untouched from the negative effects of this agreement.

In an article of USA today we can find commentary on this ‘’ Mexico took advantage of the accord with the United States and Canada in some areas. The auto, electronics and agriculture sectors grew, and foreign banks moved in, increasing access to credit, but a majority of Mexicans saw little benefit in income.’’  (Usa today, 2016) where Mexico had benefited in some ways as well as the United States and Canada took advantage in other sectors.