GLOBAL TRADE

Assignment

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GLOBAL TRADE
Assignment

An assigned group work submitted to:

FARZANA CHOUDHURY
In partial completion of the requirements for
GLOBAL TRADE (SECTION: C)
Prepared by
Group 6: CANADA

RASHEDI SAMIUR RAHMAN: 06-07262-3

JAKARIA MUHAMMUD: 06-07485-3

TASLIMA UMME: 06-07090-2

ISLAM MD. SHARIFUL:             07-07840-1

Department of Business Administration

American International University-Bangladesh

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NAFTA LOGO

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1) Is your country part of a union?

Yes, my country is part of NAFTA (North American Free Trade Agreement). This is
an organization which is consisting of 3 member nations CANADA, MAXICO AND
USA. It was the subsided Canada-United States Free Trade Agreement between the U.S.
and Canada. In terms of combined purchasing power parity GDP of its members. Main
aim behind creating NAFTA was to declining trade barrier between these 3 neighbors so
that they can be stronger in terms of business and power than other developed countries
of Europe and Asia. NAFTA helps Mexico to sell there products in USA in cheaper price
as well as it helps Canada to expand there business in USA and also it helps USA to get
Canadian and Mexican recourses easily. Because of NAFTA Canadian people can enter
into USA without any visa. There are still some barriers in exporting in some of the
agricultural products but NAFTA is seeking elimination of that barrier too.

2) What are the requirements of joining this union?

NAFTA was build only for this three nations so except them no one is can enter into this
union. There are lots of reasons behind it, because
 USA will not allow any one to enter here because it was build by USA to make
them more strong by using there neighbors.
 Canada will not allow any other nations to use there resources (for example:
Water)
 It will create more inequality in Mexico.

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3) What is Canada’s role in this union?

NAFTA superseded the Canada-United States Free Trade Agreement between the U.S.
and Canada. In terms of combined purchasing power parity GDP of its members. in 1988.
Canada and the United States signed the Canada-United States Free Trade Agreement.
The American government then entered into negotiations with the Mexican government
for a similar treaty, and Canada asked to join the negotiations in order to preserve its
perceived gains under the 1988 deal.

4) What kinds of a union is it?

Before knowing what kind of union is it lets see what the levels of economic integration
are:

1) FREE TRADE
2) CUSTOMER UNION
3) COMMON MARKET
4) ECONOMIC UNION
5) POLITICAL UNION

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NAFTA falls under level 3 COMMON MARKET; because there are no barrier of trade
between member countries in NAFTA includes a common external trade policy and
allows factors of production to move freely between members.

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5) What Are The Advantages we enjoy from NAFTA?

1) Free trade between member countries.

2) Canadian people can enter into USA with out any restriction or visa.
3) NAFTA is creating job opportunities for lots of people.
4) NAFTA is also helping by improving life style.
5) Because of NAFTA Canadian customers are getting USA’s product in cheaper
price.
6) NAFTA is helping Canada by allowing them entering into Mexico with there
product.
7) NAFTA is making these three nations stronger than before.
8) It is also helping by ensuring good use of recourses.
9) NAFTA is helping Mexico by making them strong like Canada and Mexico.
10) USA now can use Canadian and Mexican resources easier than before.
11) NAFTA created the world’s largest free trade area.
12) NAFTA increases USA’s GDP by as much as 5 % a year.
13) Elimination of tariffs also reduces inflation.
14) NAFTA is encouraging business growth.
15) NAFTA is linking 439 million people and producing $15.3 trillion in goods and
services annually.

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6) What are the disadvantages we enjoy from NAFTA?

1) Free trade is hampering Canada by allowing U.S. manufacturers to move jobs to

lower-cost Mexico.
2) Lots of people same time is loosing job.
3) Local businesses are getting out of business because other two countries are
taking over the market.
4) It has negative impact on farmers.
5) Moving without any visa can motivate illegal works.
6) Lots of USA’s top wanted criminals select Canada for hide out.
7) USA tries to motivate lots of decisions which can cause negative effect on Canada
and Mexico.
8) Deference between lower class and upper class is getting wider.
9) Lots of Canadian products are loosing there market to USA’s product.
10) Selling Canadian products in USA in cheeper price some times cause loss for the
Canadian manufacturer.

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