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North

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NAFTA, the North American Free Trade Agreement, was signed by the United States, Canada, and Mexico. NAFTA was written to create a Free Trade Area in North ... – PowerPoint PPT presentation

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Title: North


1
North America Free Trade Agreement
2
NAFTA Who?
  • NAFTA, the North American Free Trade Agreement,
    was signed by the United States,
    Canada, and Mexico.

3
NAFTA What?
  • NAFTA was written to create a Free Trade Area in
    North America.
  • Free Trade means that countries may freely
    trade goods with each other without having to pay
    a tariff (tax) on those goods.
  • In other words, free trade means no trade
    barriers!

4
NAFTA When?
  • NAFTA was signed in 1993 and went into effect on
    January 1, 1994.

5
NAFTA Why?
  • The purpose of the agreement is to
  • Reduce barriers and encourages trade between
    member countries.
  • Allow free movement of goods and services among
    the countries.
  • Encourage cooperation among countries.

6
NAFTA Pros
  • Free trade increases sales and profits for
    Mexico, Canada and the U.S.A., thus strengthening
    their economies.
  • Lack of tariffs has allowed Mexico to sell its
    goods in the USA and Canada at lower prices.
    This makes Mexican products more competitive in
    these markets and increases Mexicos profits as
    it tries to develop its economy.
  • Free trade is an opportunity for the U.S. to
    provide financial help to Mexico by making jobs
    available in factories located there.

7
NAFTA Trade Growth
  • Most economists agree that the agreement has been
    good for the countries involved.

8
What is the best title for this cartoon?
a. NAFTA Members Prepare for Picnic! b.
NAFTA Members Graciously Share Business
Ventures! c. NAFTA Members Cover Up
Conspiracy! d. NAFTA Members Vie For
Business!
9
What might be some criticisms of NAFTA?
10
NAFTA Cons
  • Free trade has caused more U.S. job losses than
    gains, especially for higher-wage jobs.
  • Factories, called Maquiladoras, are built on the
    Mexican border and workers are hired there to
    make goods at a much lower wage than workers
    would be paid in the U.S.A.

11
MAQUILADORASWages
  • Minimum WageMexico - 3.40 per day vs. US -
    5.15 per hour
  • Example Hourly compensation costs for production
    workers in manufacturingMexico - 1.21 vs US -
    17.70
  • (Global Trade Watch, The NAFTA Index, October 1,
    1998)

12
Companies with
  • 3 Day Blinds
  • 20th Century Plastics
  • Acer Peripherals
  • Bali Company, Inc.
  • Bayer Corp./Medsep
  • BMW
  • Canon Business Machines
  • Casio Manufacturing
  • Chrysler
  • Daewoo
  • Eastman Kodak/Verbatim
  • Eberhard-Faber
  • Eli Lilly Corporation
  • Ericsson
  • Fisher Price
  • Ford
  • Foster Grant Corporation
  • General Electric Company
  • JVC
  • Honda
  • Honeywell, Inc.
  • Hughes Aircraft
  • Hyundai Precision America
  • IBM
  • Matsushita
  • Mattel
  • Maxell Corporation
  • Mercedes Benz
  • Mitsubishi Electronics Corp.
  • Motorola
  • Nissan
  • Philips
  • Pioneer Speakers
  • Samsonite Corporation
  • Samsung
  • Sanyo North America
  • Sony Electronics
  • Tiffany

Maquiladoras
13
Is NAFTA good for everyone?
  • Your Turn to Teach!
  • You will create a poster that expresses the
    viewpoint of the roll that you chose.
  • Your group will use the poster to present your
    viewpoint to the rest of the class.

14
American Business Owners
  • Do you think American business owners would like
    NAFTA and maquiladoras? Why or why not?
  • 1. They can move their factories to Mexico and
    ship the goods to the US with no tariffs.
  • 2. They would not have to pay the Mexican workers
    as much as in the United States.

15
Mexican Business Owner
  • Would Mexican Business owners like NAFTA? Why or
    why not?
  • 2.They would not like foreign-owned factories
    because they would create competition.

16
Mexican Government
  • Would a Mexican Government official like NAFTA?
    Why or why not?
  • 1. NAFTA would be good for the economy of Mexico.
  • 2. Maquiladoras would provide jobs for Mexicans,
    but the profit made by maquiladoras would go back
    into the US economy, not into Mexicos

17
Mexican Factory Worker
  • Would a Mexican factory worker like NAFTA and
    maquiladoras? Why or Why Not?
  • 1. It would provide a job in a country where
    there are not enough jobs
  • 2. However, the wages are very low and the
    working conditions are not good

18
American Factory Worker
  • Would an American factory worker like NAFTA and
    maquiladoras? Why or why not?
  • 1. Many American factory workers lose their jobs
    because the owners move the factories to Mexico.
    American factory workers cannot move to Mexico to
    keep their jobs.

19
Environmentalists
  • Would an environmentalist like NAFTA and
    maquiladoras? Why or why not?
  • 1. Building factories creates pollution. An
    environmentalist would want to make sure the US,
    Canada, and Mexico all had laws to protect the
    environment. Because all three countries are
    neighbors, air pollution from one affects them
    all.

20
American Consumer
  • Would the American consumer like NAFTA and
    maquiladoras? Why or why not?
  • 1. Goods made in Mexico would cost a lot less
    because labor is cheaper there. (Cheaper goods
    would be available to American consumers.)

21
  • Thanks to Mr. Moon for sharing this PowerPoint!
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