NAFTA

14 Pages 3581 Words

g of the products which they could produce better and more efficiently than other countries. This ¡§comparative advantage¡¨ (Francis, 1999: 3) would oblige countries to keep prices fair and the quality of their products and services high.
The most noticeable change since NAFTA took effect is the movement of a tremendous amount of business to Mexico. Because of NAFTA, there are serious benefits resulting from the relocation of an American company to Mexico. Through NAFTA, Mexico has become an investor-safe country. This, combined with the low wages of Mexico, make Mexico a very attractive home for businesses in the United States.
For years before the birth of NAFTA, United States companies were afraid to operate in Mexico because of the instability within the country. Now, since the creation of the agreement, U.S. companies are guaranteed protection against any problems that may arise in Mexico. For instance, a section of NAFTA assures investors that they will be reimbursed at market rates if the government nationalizes or expropri...