Regional Integration

In today's globalized economies, virtually every country in the world belongs to some form of regional integrated trade organization whether by direct membership, bilateral or multilateral agreement. Regional integration is a process by which sovereign states in a particular region enter into an agreement to promote economic growth through the reduction of barriers to trade restrictions and safeguard common interests such as the environment. The removal of trade barriers results in a free zone thus creating a single market. Sovereign nations have many differences, some may be more economically sound and others may have a greater labor force or better technology. In the end, all regional nations must find a method to work together for the common good of all parties. The development of the North American Free Trade Agreement (NAFTA) was to solidify the nations occupying the North American continent, Canada, the United States and Mexico. This essay will examine the advantages and disadvantages of regional integration with NAFTA, it's role in promoting global business, and NAFTA's economic development on global business overall.

NAFTA's trade agreement implemented January 1, 1994 between the United States, Canada and Mexico which removes restrictions on trade between the three countries to encourage free competition, improve investment opportunities and increase market access. Some of the advantages NAFTA has afforded its members are the eradication of tariffs, product price reductions and increased profit margins. NAFTA has eliminated tariffs on all goods traded between the United States, Canada, and Mexico as of January 1, 2008. By lowering trade barriers, the agreement has expanded trade, increased employment, provided more choices for consumers at competitive prices, and increased prosperity for all three countries. NAFTA created the world's largest free trade area with about 450 million people and $17 trillion worth of goods and services. Since it came into force in 1994, trade has blossomed, investment has increased, and all three countries have become more competitive. A big advantage has been the 39 million NAFTA related jobs that have been created and the benefits of expanding trade that has flowed to businesses, farmers, workers, and consumers all over the region.

In addition to NAFTA's many advantages, there are also disadvantages with this regional trading bloc. Mexico felt that there would be a loss