Write 3 pages, apa format on the following topics. Must use 4 scholarly peer reviewed sources from 2009 or newer.
- What are the effects of the NAFTA (North American Free Trade Agreement) on the United States employment? Explain and define also on the agreement with Canada and Mexico.
- MERCOSUR and the Andean Community progress in the global economy.
- Doha Round Trade negotiations.
Explanation & Answer
Running head: NAFTA AND FREE TRADE
NAFTA and Free Trade
NAFTA AND FREE TRADE
The Effects of NAFTA on the US Employment
The first effect that NAFTA had on the employment of the United States was that most
people lost their jobs. Since there is cheap labor from Mexico, various manufacturing companies
withdrew much of their production from the U.S. According to Hakobyan & McLaren (2016)
the United States has experienced 80% of the losses in manufacturing. The states that were more
affected were New York, Texas, Michigan and California. The states had the most concentration
of the companies that transported plants to Mexico. These companies included motor textiles,
vehicles, electrical appliances, and computers.
The second effect is that U.S wages were suppressed. As a result of NAFTA, not all the
organizations in the US moved to Mexico. Some had leverage against the Union by threatening
to move. Employees chose the plant when they had to select between losing the factory and
joining the union. The employees had no bargaining power without the union (Hakobyan &
McLaren, 2016) this problem resulted in the suppression of the growth of wages. Many
industries that were relocating to Mexico made a threat to close the factory.
Another effect on employment was that the workers of Maquiladora ...