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Free Trade in Latin America
Free Trade in Latin America
How does trade work?How does trade work?
Price of a product in the U.S. = $25 Price of same product in Mexico = $20 Why???
Nations charge a tariff to bring the price of outside goods up $20 + $7 (tariff) = $27
Increases the costs of items - consumers pay more than necessary
Free Trade can solve this problem
Price of a product in the U.S. = $25 Price of same product in Mexico = $20 Why???
Nations charge a tariff to bring the price of outside goods up $20 + $7 (tariff) = $27
Increases the costs of items - consumers pay more than necessary
Free Trade can solve this problem
N A F T AN A F T A
North American Free Trade Agreement January 1, 1994 Increases business opportunities in the country
Encourages competition among countries
Promotes competition in the Free Trade Area
Allows free movement of goods and services among countries.
North American Free Trade Agreement January 1, 1994 Increases business opportunities in the country
Encourages competition among countries
Promotes competition in the Free Trade Area
Allows free movement of goods and services among countries.
Maquiladora Factories in Mexico
Maquiladora Factories in Mexico
Factories in Mexico Raw materials come in with no tax charged (tariff)
Raw materials are made into products with VERY low labor costs
Products are shipped back to the host nation to be sold in stores
The term "maquiladora", refers to the practice of millers charging a "maquila", or "miller's portion" for processing other people's grain
Who is helped by this process? Who is hurt
http://www.madeinmexicoinc.com/About_Us.htm
Factories in Mexico Raw materials come in with no tax charged (tariff)
Raw materials are made into products with VERY low labor costs
Products are shipped back to the host nation to be sold in stores
The term "maquiladora", refers to the practice of millers charging a "maquila", or "miller's portion" for processing other people's grain
Who is helped by this process? Who is hurt
http://www.madeinmexicoinc.com/About_Us.htm
How Does Free Trade Work?
How Does Free Trade Work?