NAFTA effects on Mexico

ABSTRACT The North American Free Trade Agreement (NAFTA) has been implemented with the intentions to eventually open the borders between Canada, the United States, and Mexico. This paper will only deal with the effects of the trade agreement on Mexico. This paper will attempt to show that the implementation of NAFTA and its guidelines have increased flows of U.S. foreign direct investment into the country of Mexico, and subsequently improved Mexico‘s economy. INTRODUCTION …

…same maquiladoras possible. With NAFTA set up, investors from the U.S. can profit in many ways. Semi-completed-goods and supplies can be shipped to maquiladoras for cheap assembly and manufacture labor, and environmental restrictions in Mexico allow for more profit than if production took place in the U.S. Mexico has the foundations set in place for investors from the U.S. to gain a competitive advantage from the benefits the country has to offer.