Globalization – Term Paper Example
Regional Trade Economies of all s in the world rely on trade of goods and services produced in those s. Trade takes within the state or between two or more states depending on the form of agreement between the involved parties. A few decades ago, some states in Europe formed a trade alliance to boost their economies a moved that became successful and this made other states to replicate the same idea in their regions. Good examples of trade alliances are NAFTA from American states and EFTA from European states that have similar objectives, but the two are different in some instances.
North American Free Trade Agreement (NAFTA) came into existence in the late twentieth century with three states signing a trade agreement to improve their economic status. NAFTA consists of United States, Canada, and Mexico with the three states raking in huge revenues from the alliance. NAFTA (Para. 1-2) shows that the trade among the members has improved tremendously as the barriers in the market have reduced due to formation of mutually beneficial trade regulations. Additionally, the agreement has formed an enlarged safe market for products manufactured in North American region (Japanese Ministry of Economics Para. 31-37).
On the other hand, EFTA (European free trade agreement) is a four state agreement in Europe similar to NAFTA in terms of objectives. The two unions are alike because they seek to reduce trade barriers among their member states respectively and to expand the market for their products on the world market front. However, EFTA has institutions that govern the trade between EFTA members and other states outside the union but NAFTA does not have such institutions to govern trade (The NAFTA Para. 1-7: The Chinese University of Hong Kong Para. 16-19).
Conclusively, trade unions have proved to be beneficial in the current world, as the unions have come to reduce trade barriers that exist among the involved parties. NAFTA and EFTA are examples of trade unions that have same objectives although they are different what it comes to implementation of strategies to boost trade of their respective members.
Japanese Ministry of Economics. Chapter 15: Regional Integration. N.d . Web. 5 Feb. 2014. < http://www.meti.go.jp/english/report/data/gCT9915e.html>.
The Chinese University of Hong Kong. Regional Trading Agreements. 2001.Web. 5 Feb. 2014. < http://intl.econ.cuhk.edu.hk/rta/index.php?did=11>.
The NAFTA. What It Means for U.S. Consumers. 2010. Web. 5 Feb. 2014. .