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1. NAFTA
Impact of NAFTA on Exports and Imports
Development is a sensitive issue that is promoted by the number of products that a country can supply to the world unlike those they buy from
outside. The NAFTA, according to Sun & Reed (2010), was expected to boost growth for Mexico but rather led to the opposite due to the issue
of imports and exports. The amounts of Mexican exports reduced significantly, and the nation started relying majorly on the imports mostly from
the member countries of NAFTA. The economic growth of the country reduced as the economic market was spending more on the acquisition of
products rather than in the development activities. The trade balance was therefore heavily affected by this agreement and that led to a large
deficit in their budget as compared to activities conducted before the agreement. A weak market for goods produced withinMexico affected the
standards of living for the less–skilled Mexicans whose source of income are the manufactured goods. Pacheco–LГіpez (2005) argues that...show
more content...
Angeles Villarreal and Ian F. Fergusson of Cornel University give an overview of NAFTA twenty years after its formation. In their study, the two
scribes evaluate different economic aspects in the member countries showing the successes and failures of NAFTA in the three countries. In their
argument, Ferguson & Villarreal (2013) discuss the impact of USA's integration with the Trans–Pacific Partnership (TPP) on NAFTA's
agreements. The study gives an overview of the effects of NAFTA on Mexico's economy. Numerous positive results can be attributed to NAFTA
in Mexico. For example, employment rate and quality of the jobs, the adaptation of the US technological innovation in production and the
reduction of variation of Mexico's GDP. However, there also have been certain negative elements in the economy because of the agreement. The
pact is yet to completely lower the economic disparities between Mexico and the neighboring countries (Villarreal & Fergusson,
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