Homework Help

How is the North American Free Trade Agreement (NAFTA) a globalizing force?

user profile pic

sasapott | Student, Grade 10 | eNotes Newbie

Posted January 24, 2013 at 12:55 AM via iOS

dislike 1 like

How is the North American Free Trade Agreement (NAFTA) a globalizing force?

1 Answer | Add Yours

user profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted January 24, 2013 at 1:37 AM (Answer #1)

dislike 1 like

Globalization is the process by which the economies and the societies of the world get tied more and more closely together.  The North American Free Trade Agreement (NAFTA) is a force that promotes that process because it makes it easier for Mexico, the United States, and Canada to trade with one another.  This trade ties their economies more closely together.

NAFTA is an agreement that facilitates trade between the countries of North America.  It aims to do away with all barriers to trade between those countries.  This would mean that goods made in Mexico, for example, could be sold in Canada without having to pay tariffs or in any other way be treated as if they were made in a foreign country.  This would clearly lead to more trade between the three countries.

More free trade leads to more globalization.  More free trade means that the economies of the North American countries get tied together more closely.  It becomes much easier, for example, for WalMart to set up stores in Mexico than it otherwise would be.  This causes more interconnections to spring up between the countries’ economies.  More interconnections mean more globalization.

Join to answer this question

Join a community of thousands of dedicated teachers and students.

Join eNotes