NAFTA Flashcards
What does NAFTA stand for?
North American Free Trade Agreement
Which countries are part of NAFTA?
Mexico, Canada and the USA
How many times has NAFTA increased trade between the three countries?
It has tripled
By what percentage has it increased US growth by each year?
0.5%
How many jobs has NAFTA created?
It has created 5.4 million but supports 17.7 million
How many times has the volume of FDI increased?
Three times
To what extent has the US increased FDI to Canada and Mexico?
In Mexico, it has gone from $15 billion to $105 billion
In Canada, it has gone from $70 billion to $350 billion
What has NAFTA done to the fuel prices in the area?
It has decreased due to free trade
How has NAFTA affected jobs in the US?
Lost 682,900 jobs due to movement of businesses elsewhere
How many Mexican farmers were put out of business?
1.3 million
This was because the US government subsidised the prices of the big industries, causing local businesses not to be able to compete with the prices
How did NAFTA affect migration into America?
More Mexicans moved illegally to America (a total of 6.9 million in 2007)
What is a maquiladora?
A US owned factory in Mexico with Mexican workers working for a lower wage
How was the Mexican environment affected?
US companies degraded the environment to keep costs low
This was through fertilisers, chemicals and deforestation
