Nafta And Mexican Trucking Case Analysis Essay
Andrew Brickfield
David Kiersnowski
Nicolas Gallardo Vasquez
Case Analysis
Fundamentals of International Business
12 November 2013
NAFTA and Mexican Trucking
Section 1. The Problem; NAFTA and Mexican Trucking
The implementation of NAFTA on January 1, 1994 brought the immediate elimination of tariffs on more than one-half of Mexico 's exports to the U.S. and more than one-third of U.S. exports to Mexico. Under the agreement, the United States and Mexico were to allow trucks from each country to deliver goods to destinations inside the other country, provided the trucks and their drivers met all safety regulations mandated by the host government.
According to Annex I of the agreement, licensed and qualified Mexican trucks were …show more content…
economy, the world’s largest, has a GDP of $15.1 trillion, a small growth rate of 1.7 % and a yearly income of $48,387 per capita. The unemployment rate is hovering around 7.9% while the nation still attempts to recover fully from the 2008 financial crisis and ensuing recession. However, Under Democratic President Barack Obama, the federal system of government, designed to reserve significant powers to the state and local levels, has been strained by the national government’s rapid expansion. Spending at the national level rose to over 25 percent of GDP in 2010, and gross public debt surpassed 100 percent of GDP in 2011 (Heritage …show more content…
Other constituencies may derive power to pressure representatives from their ability to expend resources such as money and public relations expertise to influence voters outside their constituency to vote with the constituency on a given issue. For example, one constituency affected by NAFTA in the U.S. is Floridian tomatoes growers. These growers know that they cannot compete with Mexicans growers because of low labor and land costs in Mexico creating a much lower priced tomato than what can be grown in the U.S. Thus, on numerous occasions throughout the implementation of NAFTA, Florida growers have pressured elements of the U.S. government to limit the ability of Mexican growers to freely sell tomatoes in the U.S. This has gone as far as Florida growers pressuring the government to initiate two anti-dumping investigations of Mexican tomato growers. Critics of Florida tomato growers speculate that the Tomato Growers are using their large influence in Florida, a U.S. swing state, to encourage numerous government administrations to prevent implementing certain provisions of
David Kiersnowski
Nicolas Gallardo Vasquez
Case Analysis
Fundamentals of International Business
12 November 2013
NAFTA and Mexican Trucking
Section 1. The Problem; NAFTA and Mexican Trucking
The implementation of NAFTA on January 1, 1994 brought the immediate elimination of tariffs on more than one-half of Mexico 's exports to the U.S. and more than one-third of U.S. exports to Mexico. Under the agreement, the United States and Mexico were to allow trucks from each country to deliver goods to destinations inside the other country, provided the trucks and their drivers met all safety regulations mandated by the host government.
According to Annex I of the agreement, licensed and qualified Mexican trucks were …show more content…
economy, the world’s largest, has a GDP of $15.1 trillion, a small growth rate of 1.7 % and a yearly income of $48,387 per capita. The unemployment rate is hovering around 7.9% while the nation still attempts to recover fully from the 2008 financial crisis and ensuing recession. However, Under Democratic President Barack Obama, the federal system of government, designed to reserve significant powers to the state and local levels, has been strained by the national government’s rapid expansion. Spending at the national level rose to over 25 percent of GDP in 2010, and gross public debt surpassed 100 percent of GDP in 2011 (Heritage …show more content…
Other constituencies may derive power to pressure representatives from their ability to expend resources such as money and public relations expertise to influence voters outside their constituency to vote with the constituency on a given issue. For example, one constituency affected by NAFTA in the U.S. is Floridian tomatoes growers. These growers know that they cannot compete with Mexicans growers because of low labor and land costs in Mexico creating a much lower priced tomato than what can be grown in the U.S. Thus, on numerous occasions throughout the implementation of NAFTA, Florida growers have pressured elements of the U.S. government to limit the ability of Mexican growers to freely sell tomatoes in the U.S. This has gone as far as Florida growers pressuring the government to initiate two anti-dumping investigations of Mexican tomato growers. Critics of Florida tomato growers speculate that the Tomato Growers are using their large influence in Florida, a U.S. swing state, to encourage numerous government administrations to prevent implementing certain provisions of