ECON 255 Lecture Notes - North American Free Trade Agreement, Comparative Advantage, Office Of The United States Trade Representative
Document Summary
The low cost makes doing business abroad too attractive so, american manufacturing job has been disseminated". Report on midwestern city (evansville) after nafta by rick carr. But, its manufacturing was then transferred to mexico immediate impact: people in evansville lose their job this is largely due to the cheap wage offered by the mexicans. Liberal economic policy"s estimates the trade relation with mexico will eliminate 24k jobs in indiana alone but at a national level, it will be close to. Rebuttal from us chamber of commerce: american farms were able to increase their exports to mexico and it pays for 1. 7 mil jobs. Despite the outsourcing, some of the companies in evansville still remain . Nafta is also good for american agriculture industry because it eliminated a. 200% tariffs on american-grown corn, so commodity in mexico is a lot cheaper and this helps farmers to produce their export.
