Advantages Of Nafta

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NAFTA AND BUSINESS IN CANADA

Merits and Demerits of NAFTA for Canada
NAFTA (North American Free Trade Agreement) is an exchange agreement between Canada, Mexico and the United States that became effective in 1994 under President Bill Clinton. It essentially eliminated almost all tariffs among the three nations, allowing for the seamless flow of goods and supplies across borders. (Top of Trump's wish list is to renegotiate NAFTA)1.
Everything has focal points and hindrances. It is same in case of NAFTA. A few people trust it as a help while another vibe it as boycott. The first and foremost advantage of NAFTA is it has created more jobs due to which standard of living has improved. Next, it benefits Canadians since items made in Mexico can be conveyed to Canada which helps bring down expenses. Most of the Canadian businesses are directly dependent on NAFTA.
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It requires proper planning and management. Every country has different rules and regulations of trade that need to be followed to do business in that country. Also, in Canada there are certain guidelines and barriers of trade.
The first and foremost barrier is social and cultural differences. In Canada, there are multicultural people and international companies must keep in minds the public needs and taste while starting any business. Pitching items starting with one nation then onto the next is at times troublesome when the way of life of the two nations contrast fundamentally. They may not harm people’s religious beliefs. The companies must take care of customers shopping habits, social beliefs and language. (textbook, chapter 5)5.
Moving further, there are also various legal and political barriers faced by an international company. The political atmosphere of a nation can majorly affect worldwide business. They can change countries trade policies at any time. Hence, it can make horrible atmosphere for foreign trade. (textbook, chapter

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