Abstract
The North American Free Trade Agreement has given leverage to the USA and Mexico to gain a competitive advantage in manufacturing by offering infrastructure and services required to turn the industrial production cost effective. It has been estimated by the World Trade Organization that about 50% of global trade flows emerge through the preferential trade agreements between the countries. This trend indicates the growing importance of the regional agreements over the preferential or bilateral trade agreements between the countries as they are comprehensive and offer wider benefits. This chapter discusses the fundamentals of the integration process in the North American trade and economy and delineates how the market integration has been driven through exports, imports, and manufacturing investment made by the member countries which, taken together, have been responsible for 90% of regional imports during 2002–2012. The chapter analyzes the impact of market integration on the economy responding the pertinent questions that remain unresolved, whether the market integration through regional trade agreements delivers the desired benefits to the developing nations as compared to the one with the develop trade and economic conditions.
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Rajagopal, Zlatev, V. (2018). Market Integration in NAFTA Region. In: Business Dynamics in North America. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-57606-0_3
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DOI: https://doi.org/10.1007/978-3-319-57606-0_3
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