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Essay / Research Paper Abstract
This 10 page paper provides an overview of the historical context, develop and strategies behind NAFTA, the North American Free Trade Association. Bibliography lists 5 sources.
Page Count:
10 pages (~225 words per page)
File: MH11_MHNAFTA6.rtf
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Unformatted sample text from the term paper:
operations in light of a changing industry. In the midst of NAFTA reforms, declining tariffs placed on Mexican broom imports posed a serious threat to the company.
Earlier in the 1990s, President Clinton had argued the necessity for industry relief for a period of three years as the industry prepared for import competition. At that time,
the US International Trade Commission ruled that the industry should have protection from foreign imports, through the placing of a substantial tariff on imports from Mexico for a period of
three years. In 1999, though, that three year period had come to an end, and companies like Crystal Lake have had to assess the impacts of NAFTA, the benefits
and failures of the tariff relief program, and the industry impacts of an influx of cheaper Mexican wares in 1999. The Impacts of CBI and NAFTA President Clinton
implemented a protectionary tariff to benefit the domestic corn broom industry because of the claims within the industry that the sudden influx of tariff-free corn broom products under NAFTA would
significantly impact the market share for US companies. More specifically, companies in the United States have to comply with child labor laws and with minimum wage and workmans compensation
requirements that are costly, and so their corn broom products, products that are clearly not expensive, high-end, or high-technology type products, cost more to produce in the United States than
in countries like Mexico. At the same time, there is generally no visible difference in the quality of these products (when comparing US products to Mexican products)
and so the industry has few avenues to tout their products against cheaper Mexican products. Competition, then, is direct, and the availability of Mexican products further exacerbates the concerns
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