NAFTA - Globalisation Flashcards
When did it start and with what objective
January 1st, 1994 - the aim of eliminating most tariffs and restrictions on free trade between the USA, Mexico and Canada
Why does Mexico have a bigger advantage to the USA as a manufacturing site
Lower wages, many US companies relocate their factories and operations across the border, increasing globalisation as many more countries are involved in producing a product
Give the spatial division of Labour and its benefits
Goods are manufactured cheaply in Mexican maquiladoras but are designed and marketed by highly skilled professionals in the USA
This gives more jobs to those in Mexico, whilst allowing cheaper products to be sold in the US, increasing sales
How many consumers does NAFTA have
390 million
NAFTA was seen as an important step in the gradual move towards…………………………………which is being directed by the WTO
Global Free trade
When NAFTA was established who did it vied with
EEA - made it the largest trade bloc in the world
Why is NAFTA’s influence on globalisation slightly limited
Friction of distance
Countries far. ore likely to trade with neighbours rather than distant countries if transportation costs are high (USA’s almost exclusive relationship with Canada).
