(I hope you like words because after the few picture posts its time to go heavy on details :)
A form of globalization is free trade and the opening of markets.
A free trade area is the result of a free trade agreement between two or more countries. A free trade area is a designated group of countries that have agreed to eliminate tariffs, quotas and preferences on most (if not all) goods between them
Free Trade Area is a region in which obstacles to unrestricted trade have been reduced to a minimum.
Within an industrialized country there are usually few if any significant barriers to the easy exchange of goods and services between parts of that country. For example, there are usually no trade tariffs or import quotas; there are usually no delays as goods pass from one part of the country to another (other than those that distance imposes); there are usually no differences of taxation and regulation.
Between countries on the other hand, many of these barriers to the easy exchange of goods can and often do occur. It is commonplace for there to be import duties of one kind or another (as goods enter a country) and the levels of sales tax and regulation often vary by country.
The aim of a free trade area is to so reduce barriers to easy exchange that trade can grow as a result of specialisation, division of labour, and most importantly via (the theory and practice of) comparative advantage. The theory of comparative advantage argues that in an unrestricted marketplace (in equilibrium) each source of production will tend to specialize in that activity where it has comparative (rather than absolute) advantage. The theory argues that the net result will be an increase in income and ultimately wealth and well-being for everyone in the free trade area. However the theory refers only to aggregate wealth and says nothing about the distribution of wealth. In fact there may be significant losers, in particular among the recently protected industries with a comparative disadvantage. The proponent of free trade can, however, retort that the gains of the gainers exceed the losses of the losers.
source from http://en.wikipedia.org/wiki/Free_trade_area
an example of a free trade area is the North American Free Trade Agreement (NAFTA) which is the worlds largest free trade area.
The North American Free Trade Agreement NAFTA called for immediately eliminating duties on the majority of tariffs between products traded among the United States, Canada and Mexico, and gradually phasing out other tariffs, over a 15-year period. Restrictions were to be removed from many categories, including motor vehicles and automotive parts, computers, textiles, and agriculture. The treaty also protected intellectual property rights (patents, copyrights, and trademarks), and outlined the removal of investment restrictions among the three countries. The agreement is trilateral in nature (that is, the stipulations apply equally to all three countries) in all areas except agriculture, in which stipulation, tariff reduction phase-out periods and protection of selected industries, were negotiated bilaterally. Provisions regarding worker and environmental protection were added later as a result of supplemental agreements signed in 1993.
This agreement was an expansion of the earlier Canada-U.S. Free Trade Agreement of 1988. Unlike the European Union, NAFTA does not create a set of supranational governmental bodies, nor does it create a body of law superior to national law. NAFTA is a treaty under international law. Under United States law it is classed as a congressional-executive agreement rather than a treaty, reflecting a peculiar sense of the term "treaty" in United States constitutional law that is not followed by international law or the laws of other nations.
source from http://en.wikipedia.org/wiki/North_American_Free_Trade_Agreement
there are both positive and negative results of this trade agreement.
the most obvious positive result is that Canadian product exports to both Mexico and the United States roughly doubled between 1994 and 2000, from C$1 billion to C$2 billion to Mexico, and from C$183 billion to C$359 billion to the United States. NAFTA has made Canada more attractive to foreign and domestic investors.
Benefits for US customers
-more free trade resulting in greater choices in goods and services
-lower prices and improved quality products
-stronger health and safety standards
-improved economic stability in the U.S. marketplace
-a marketplace that is increasingly driven more by supply and demand than by barriers to commerce
Benefits for US business
-larger North American market access
-new export and investment opportunities
-elimination of tariffs; Canadian and U.S. tariffs were eliminated on January 1,
-1998; Mexico will be duty free by the year 2008 for North American made products
-creation of strong "rules of origin" for North American made products
-effective procedures to resolve trade disputes
-establishment of compatible standards of goods between the three countries
-facilitation of cross-border movement of goods and services
however there is a downside to this agreement like a downside to globalization
for example there are those who argue that U.S. exports to Mexico have increased dramatically as a result of that nation's economic reforms and that the prospect of NAFTA means more exports and more jobs. However, the rise in exports can be misleading. In 1992, 35% of US. exports to Mexico, $14,100,000,000, went to maquiladoras. These are exports that return to the US. as transformed products. Moreover, over one-third of American exports to Mexico in 1992, $13,600,000,000, were capital goods - those associated with investment in plants and equipment that undoubtedly will result in finished products exported back to the US. This increase in exports is likely to be short-term as Mexico establishes its infrastructure. Once Mexico is able to produce its own capital goods, it will not need to rely on imports from the US.
In my opinion the free trade agreement would mostly benefit the US as they have more goods to exports, this would also result in the creation of more jobs due to higher exports. For example, Mexico would be flooded with Us exported goods which would add to the competition of Mexico's economy.
A form of globalization is free trade and the opening of markets.
A free trade area is the result of a free trade agreement between two or more countries. A free trade area is a designated group of countries that have agreed to eliminate tariffs, quotas and preferences on most (if not all) goods between them
Free Trade Area is a region in which obstacles to unrestricted trade have been reduced to a minimum.
Within an industrialized country there are usually few if any significant barriers to the easy exchange of goods and services between parts of that country. For example, there are usually no trade tariffs or import quotas; there are usually no delays as goods pass from one part of the country to another (other than those that distance imposes); there are usually no differences of taxation and regulation.
Between countries on the other hand, many of these barriers to the easy exchange of goods can and often do occur. It is commonplace for there to be import duties of one kind or another (as goods enter a country) and the levels of sales tax and regulation often vary by country.
The aim of a free trade area is to so reduce barriers to easy exchange that trade can grow as a result of specialisation, division of labour, and most importantly via (the theory and practice of) comparative advantage. The theory of comparative advantage argues that in an unrestricted marketplace (in equilibrium) each source of production will tend to specialize in that activity where it has comparative (rather than absolute) advantage. The theory argues that the net result will be an increase in income and ultimately wealth and well-being for everyone in the free trade area. However the theory refers only to aggregate wealth and says nothing about the distribution of wealth. In fact there may be significant losers, in particular among the recently protected industries with a comparative disadvantage. The proponent of free trade can, however, retort that the gains of the gainers exceed the losses of the losers.
source from http://en.wikipedia.org/wiki/Free_trade_area
an example of a free trade area is the North American Free Trade Agreement (NAFTA) which is the worlds largest free trade area.
The North American Free Trade Agreement NAFTA called for immediately eliminating duties on the majority of tariffs between products traded among the United States, Canada and Mexico, and gradually phasing out other tariffs, over a 15-year period. Restrictions were to be removed from many categories, including motor vehicles and automotive parts, computers, textiles, and agriculture. The treaty also protected intellectual property rights (patents, copyrights, and trademarks), and outlined the removal of investment restrictions among the three countries. The agreement is trilateral in nature (that is, the stipulations apply equally to all three countries) in all areas except agriculture, in which stipulation, tariff reduction phase-out periods and protection of selected industries, were negotiated bilaterally. Provisions regarding worker and environmental protection were added later as a result of supplemental agreements signed in 1993.
This agreement was an expansion of the earlier Canada-U.S. Free Trade Agreement of 1988. Unlike the European Union, NAFTA does not create a set of supranational governmental bodies, nor does it create a body of law superior to national law. NAFTA is a treaty under international law. Under United States law it is classed as a congressional-executive agreement rather than a treaty, reflecting a peculiar sense of the term "treaty" in United States constitutional law that is not followed by international law or the laws of other nations.
source from http://en.wikipedia.org/wiki/North_American_Free_Trade_Agreement
there are both positive and negative results of this trade agreement.
the most obvious positive result is that Canadian product exports to both Mexico and the United States roughly doubled between 1994 and 2000, from C$1 billion to C$2 billion to Mexico, and from C$183 billion to C$359 billion to the United States. NAFTA has made Canada more attractive to foreign and domestic investors.
Benefits for US customers
-more free trade resulting in greater choices in goods and services
-lower prices and improved quality products
-stronger health and safety standards
-improved economic stability in the U.S. marketplace
-a marketplace that is increasingly driven more by supply and demand than by barriers to commerce
Benefits for US business
-larger North American market access
-new export and investment opportunities
-elimination of tariffs; Canadian and U.S. tariffs were eliminated on January 1,
-1998; Mexico will be duty free by the year 2008 for North American made products
-creation of strong "rules of origin" for North American made products
-effective procedures to resolve trade disputes
-establishment of compatible standards of goods between the three countries
-facilitation of cross-border movement of goods and services
however there is a downside to this agreement like a downside to globalization
for example there are those who argue that U.S. exports to Mexico have increased dramatically as a result of that nation's economic reforms and that the prospect of NAFTA means more exports and more jobs. However, the rise in exports can be misleading. In 1992, 35% of US. exports to Mexico, $14,100,000,000, went to maquiladoras. These are exports that return to the US. as transformed products. Moreover, over one-third of American exports to Mexico in 1992, $13,600,000,000, were capital goods - those associated with investment in plants and equipment that undoubtedly will result in finished products exported back to the US. This increase in exports is likely to be short-term as Mexico establishes its infrastructure. Once Mexico is able to produce its own capital goods, it will not need to rely on imports from the US.
In my opinion the free trade agreement would mostly benefit the US as they have more goods to exports, this would also result in the creation of more jobs due to higher exports. For example, Mexico would be flooded with Us exported goods which would add to the competition of Mexico's economy.
e-globalised-4 blogged at 5:04 AM
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(I hope you like words because after the few picture posts its time to go heavy on details :)
A form of globalization is free trade and the opening of markets.
A free trade area is the result of a free trade agreement between two or more countries. A free trade area is a designated group of countries that have agreed to eliminate tariffs, quotas and preferences on most (if not all) goods between them
Free Trade Area is a region in which obstacles to unrestricted trade have been reduced to a minimum.
Within an industrialized country there are usually few if any significant barriers to the easy exchange of goods and services between parts of that country. For example, there are usually no trade tariffs or import quotas; there are usually no delays as goods pass from one part of the country to another (other than those that distance imposes); there are usually no differences of taxation and regulation.
Between countries on the other hand, many of these barriers to the easy exchange of goods can and often do occur. It is commonplace for there to be import duties of one kind or another (as goods enter a country) and the levels of sales tax and regulation often vary by country.
The aim of a free trade area is to so reduce barriers to easy exchange that trade can grow as a result of specialisation, division of labour, and most importantly via (the theory and practice of) comparative advantage. The theory of comparative advantage argues that in an unrestricted marketplace (in equilibrium) each source of production will tend to specialize in that activity where it has comparative (rather than absolute) advantage. The theory argues that the net result will be an increase in income and ultimately wealth and well-being for everyone in the free trade area. However the theory refers only to aggregate wealth and says nothing about the distribution of wealth. In fact there may be significant losers, in particular among the recently protected industries with a comparative disadvantage. The proponent of free trade can, however, retort that the gains of the gainers exceed the losses of the losers.
source from http://en.wikipedia.org/wiki/Free_trade_area
an example of a free trade area is the North American Free Trade Agreement (NAFTA) which is the worlds largest free trade area.
The North American Free Trade Agreement NAFTA called for immediately eliminating duties on the majority of tariffs between products traded among the United States, Canada and Mexico, and gradually phasing out other tariffs, over a 15-year period. Restrictions were to be removed from many categories, including motor vehicles and automotive parts, computers, textiles, and agriculture. The treaty also protected intellectual property rights (patents, copyrights, and trademarks), and outlined the removal of investment restrictions among the three countries. The agreement is trilateral in nature (that is, the stipulations apply equally to all three countries) in all areas except agriculture, in which stipulation, tariff reduction phase-out periods and protection of selected industries, were negotiated bilaterally. Provisions regarding worker and environmental protection were added later as a result of supplemental agreements signed in 1993.
This agreement was an expansion of the earlier Canada-U.S. Free Trade Agreement of 1988. Unlike the European Union, NAFTA does not create a set of supranational governmental bodies, nor does it create a body of law superior to national law. NAFTA is a treaty under international law. Under United States law it is classed as a congressional-executive agreement rather than a treaty, reflecting a peculiar sense of the term "treaty" in United States constitutional law that is not followed by international law or the laws of other nations.
source from http://en.wikipedia.org/wiki/North_American_Free_Trade_Agreement
there are both positive and negative results of this trade agreement.
the most obvious positive result is that Canadian product exports to both Mexico and the United States roughly doubled between 1994 and 2000, from C$1 billion to C$2 billion to Mexico, and from C$183 billion to C$359 billion to the United States. NAFTA has made Canada more attractive to foreign and domestic investors.
Benefits for US customers
-more free trade resulting in greater choices in goods and services
-lower prices and improved quality products
-stronger health and safety standards
-improved economic stability in the U.S. marketplace
-a marketplace that is increasingly driven more by supply and demand than by barriers to commerce
Benefits for US business
-larger North American market access
-new export and investment opportunities
-elimination of tariffs; Canadian and U.S. tariffs were eliminated on January 1,
-1998; Mexico will be duty free by the year 2008 for North American made products
-creation of strong "rules of origin" for North American made products
-effective procedures to resolve trade disputes
-establishment of compatible standards of goods between the three countries
-facilitation of cross-border movement of goods and services
however there is a downside to this agreement like a downside to globalization
for example there are those who argue that U.S. exports to Mexico have increased dramatically as a result of that nation's economic reforms and that the prospect of NAFTA means more exports and more jobs. However, the rise in exports can be misleading. In 1992, 35% of US. exports to Mexico, $14,100,000,000, went to maquiladoras. These are exports that return to the US. as transformed products. Moreover, over one-third of American exports to Mexico in 1992, $13,600,000,000, were capital goods - those associated with investment in plants and equipment that undoubtedly will result in finished products exported back to the US. This increase in exports is likely to be short-term as Mexico establishes its infrastructure. Once Mexico is able to produce its own capital goods, it will not need to rely on imports from the US.
In my opinion the free trade agreement would mostly benefit the US as they have more goods to exports, this would also result in the creation of more jobs due to higher exports. For example, Mexico would be flooded with Us exported goods which would add to the competition of Mexico's economy.
A form of globalization is free trade and the opening of markets.
A free trade area is the result of a free trade agreement between two or more countries. A free trade area is a designated group of countries that have agreed to eliminate tariffs, quotas and preferences on most (if not all) goods between them
Free Trade Area is a region in which obstacles to unrestricted trade have been reduced to a minimum.
Within an industrialized country there are usually few if any significant barriers to the easy exchange of goods and services between parts of that country. For example, there are usually no trade tariffs or import quotas; there are usually no delays as goods pass from one part of the country to another (other than those that distance imposes); there are usually no differences of taxation and regulation.
Between countries on the other hand, many of these barriers to the easy exchange of goods can and often do occur. It is commonplace for there to be import duties of one kind or another (as goods enter a country) and the levels of sales tax and regulation often vary by country.
The aim of a free trade area is to so reduce barriers to easy exchange that trade can grow as a result of specialisation, division of labour, and most importantly via (the theory and practice of) comparative advantage. The theory of comparative advantage argues that in an unrestricted marketplace (in equilibrium) each source of production will tend to specialize in that activity where it has comparative (rather than absolute) advantage. The theory argues that the net result will be an increase in income and ultimately wealth and well-being for everyone in the free trade area. However the theory refers only to aggregate wealth and says nothing about the distribution of wealth. In fact there may be significant losers, in particular among the recently protected industries with a comparative disadvantage. The proponent of free trade can, however, retort that the gains of the gainers exceed the losses of the losers.
source from http://en.wikipedia.org/wiki/Free_trade_area
an example of a free trade area is the North American Free Trade Agreement (NAFTA) which is the worlds largest free trade area.
The North American Free Trade Agreement NAFTA called for immediately eliminating duties on the majority of tariffs between products traded among the United States, Canada and Mexico, and gradually phasing out other tariffs, over a 15-year period. Restrictions were to be removed from many categories, including motor vehicles and automotive parts, computers, textiles, and agriculture. The treaty also protected intellectual property rights (patents, copyrights, and trademarks), and outlined the removal of investment restrictions among the three countries. The agreement is trilateral in nature (that is, the stipulations apply equally to all three countries) in all areas except agriculture, in which stipulation, tariff reduction phase-out periods and protection of selected industries, were negotiated bilaterally. Provisions regarding worker and environmental protection were added later as a result of supplemental agreements signed in 1993.
This agreement was an expansion of the earlier Canada-U.S. Free Trade Agreement of 1988. Unlike the European Union, NAFTA does not create a set of supranational governmental bodies, nor does it create a body of law superior to national law. NAFTA is a treaty under international law. Under United States law it is classed as a congressional-executive agreement rather than a treaty, reflecting a peculiar sense of the term "treaty" in United States constitutional law that is not followed by international law or the laws of other nations.
source from http://en.wikipedia.org/wiki/North_American_Free_Trade_Agreement
there are both positive and negative results of this trade agreement.
the most obvious positive result is that Canadian product exports to both Mexico and the United States roughly doubled between 1994 and 2000, from C$1 billion to C$2 billion to Mexico, and from C$183 billion to C$359 billion to the United States. NAFTA has made Canada more attractive to foreign and domestic investors.
Benefits for US customers
-more free trade resulting in greater choices in goods and services
-lower prices and improved quality products
-stronger health and safety standards
-improved economic stability in the U.S. marketplace
-a marketplace that is increasingly driven more by supply and demand than by barriers to commerce
Benefits for US business
-larger North American market access
-new export and investment opportunities
-elimination of tariffs; Canadian and U.S. tariffs were eliminated on January 1,
-1998; Mexico will be duty free by the year 2008 for North American made products
-creation of strong "rules of origin" for North American made products
-effective procedures to resolve trade disputes
-establishment of compatible standards of goods between the three countries
-facilitation of cross-border movement of goods and services
however there is a downside to this agreement like a downside to globalization
for example there are those who argue that U.S. exports to Mexico have increased dramatically as a result of that nation's economic reforms and that the prospect of NAFTA means more exports and more jobs. However, the rise in exports can be misleading. In 1992, 35% of US. exports to Mexico, $14,100,000,000, went to maquiladoras. These are exports that return to the US. as transformed products. Moreover, over one-third of American exports to Mexico in 1992, $13,600,000,000, were capital goods - those associated with investment in plants and equipment that undoubtedly will result in finished products exported back to the US. This increase in exports is likely to be short-term as Mexico establishes its infrastructure. Once Mexico is able to produce its own capital goods, it will not need to rely on imports from the US.
In my opinion the free trade agreement would mostly benefit the US as they have more goods to exports, this would also result in the creation of more jobs due to higher exports. For example, Mexico would be flooded with Us exported goods which would add to the competition of Mexico's economy.
e-globalised-4 blogged at 5:04 AM
