Tlcan

International Trade in Mexico |
For any country is essential exchange of products and service, because is an important part of the economic and social balance of a country. Today it is very difficult to find a country that does not have any kind of trade with another country, perhaps it could be the case in countries like North Korea or Cuba, but I'm sure there must be some relationship with amultinational company either goods, services or securities.
Globalization is a phenomenon that came to prevail indefinitely, if we look at the definition of globalization find "the increasing integration of economies and societies around the world, has been one of the hottest topics in international economics in recent years" (World Bank). Therefore this global system is responsible for openingthe doors to all countries, to form a global market. And for Mexico was no different.
In 1994 Mexico, officially entered the world market with the integration into NAFTA. This agreement opened the doors to trade between the U.S., Canada and Mexico.
Free trade for our country has been very important not only for our people but also for our economy. Free trade has lead to increase commerce andforeign investment in México, new business had been developed and Mexicans entrepreneurs have had the opportunity to expand not only to our neighbor countries but to the whole world with different business opportunities, competing with products from developed countries and entering to its markets.
A great example of success with free trade is the NAFTA (North American Free Trade Agreement. Since 1994trade between member countries (Canada, México and de U.S.A.) has more than tripled, reaching U.S. $ 946.1 billion dollars. Also employment is one of the greatest benefits that comes with free trade thanks to foreign investment, in which Mexico has become one of the largest recipients of foreign direct investment among emerging countries, economy has grown and factories, the “maquiladoras” anddifferent foreign companies, bring employment for many Mexicans such as Volkswagen Plant in Puebla which has more than 15,000 employees.
Another benefit from free trade it’s that it promotes competition, diversity, and innovation this reflected in the different products now a day on the market. With so many products and price choices consumers start to consume more leading to an increase of thenation economy. In the other hand, companies start investing their money on research in order to achieve quality and low prices at the same time to satisfy consumer’s needs. Whit free trade consumers have turned most important asset a company can have and all of the services and products are designed to improve their lives.
On the other hand, free trade has many disadvantages for the localcountry. One of the most controversial problems is the lost of national identity; with the introduction of foreign products into the local market, national consumers have the opportunity to try new experiences, so that sometimes they end up adopting that product to their everyday life and it’s not just the product, it includes the culture too. For example nowadays hamburgers is one of the most currentfood in Mexicans diet, we made hamburgers as Mexican as tacos are in our culture.
Free trade not only creates many new jobs like we mention before, it also had caused unemployment of many people working for national companies; that is because many national companies are not enough strong to compete with the new arrivals in the country. When consumers have the opportunity to acquire a cheaperproduct they will take it, and usually that product will be the imported one, this will cause loss of the people interested for national producers and the loss for local companies sometimes is too big that they have to close the company and all the employees become unemployed. One example in our country is the history of the Mexican toy sector, before the NAFTA this sector supplied all the Mexicans...