Question

Using complete sentences, explain the importance of NAFTA. Be sure to discuss the close economic relationship between Canada and the United States.

Answer 1

Answer:The North American Free Trade Agreement (NAFTA) was a trade agreement signed by Canada, Mexico, and the United States. It took effect in 1994 and got rid of tariffs and other trade barriers between the countries. NAFTA is a clear example of how closely the economies of Canada and the United States are joined. The two countries have become each other’s largest trading partner, with billions of dollars worth of goods passing between them. The goods each passes across the border are the same kinds of products coming from both ways. Both the United States and Canada produce and trade cars, machinery, oil, plastics, and food products. The other way that the two countries are joined is financially. They have invested a lot of money in each other’s futures in the form of stocks, property holdings, and company ownership.

Step-by-step explanation:

Answer 2

NAFTA as an organization is very important for the three North American economies, the USA, Canada, and Mexico. It is basically a regional trade organization which has lifted the borders when it comes to trade, thus enabling free movement of goods between these three nations. This has resulted in rise of the economies of all three nations, as there were no trade barriers between them anymore. The companies where able to move their facilities and to operate in each of these countries, which brought them larger profits. The Canadian and the US economies became almost like one, as the companies managed to operate in both places, and to become major players in the market, this especially goes for the US companies that made Canada their home terrain.