Nafta Pest Analysis

Topics: North American Free Trade Agreement, International trade, Mexico Pages: 10 (3454 words) Published: April 23, 2012
“NAFTA” ……….PEST Analysis and its effects on Business Environment

Module Name: Managing International Business

Submission date: 8th Nov, 2011

Subm Table of Contents:

1 Executive Summary

2 Aims and Objective

3 The Pest Analysis
* 3.1 Political Environment * 3.2 Economic Environment * 3.3 Social Environment
* 3.4 Technological Environment

4 Conclusion

5 Appendix

6 Bibliography

7 Reflective Statement
*7.1 By Akansha Kalra
*7.2 By Nikita Hundal
*7.3 By Ruchir Wakde
*7.4 By Tanya Mittal
Executive Summary:

The North American Free Trade Agreement (NAFTA) was instigated with negotiations between U.S, Canada and Mexico. Sovereign nations face many differences, the reason being every nation having their own importance. Technologically some are better; some are economically stable while some might have cheap labour force and mobility. For the widespread betterment of all the regional nations, a pact like NAFTA played a vital role in solidifying nations (US, Mexico and Canada). Eighteen months later to the discussion on 1st January 1994, a formal trade agreement was signed by Prime Minister Brian Mulroney of Canada, President Bush of America and President Carlos Salinas de Gortari. Apart from the trade agreement, two other agreements which dealt with labour and environment were also signed. [Office of the United States Trade Representative, 2007] On basic grounds NAFTA took birth to liberalize trade between the member countries, augment investment opportunities and promote economic co-operation. NAFTA is complex set of agreements consisting of more than 2000 pages. There are eight parts in the provision that deal with various provisions: eliminating trade barriers, rules of competition and strategy to enhance competition, Rules of origin to access goods all over the area, establish working framework for further trade and protection of intellectual property rights. [In Wake of NAFTA, Journal, 9(2)]. Even after the decade of its implementation, debates regarding its impact still prevail. There have been timely discussions on its economic impact on society. Economically, there certainly have been many beneficiaries. The joint agreement created the world’s largest free trade area, hence creating a huge bond between 450 million people, manufacturing goods and services worth $17 trillion. NAFTA’s various policies for investors have further reduced trade barriers. US, Mexico as well as Canada since then discuss and share an extensive range of joint hemisphere as well as global issues. This immensely affects each one of them and also re-establishes the views regarding social and economic well being, safety and security of citizens. It was due to NAFTA, that Mexico became politically stable and enjoyed the tang of economic success after collaborating with super power; U.S. After, the implementation NAFTA has Politically, Economically, Socially as well as Technologically shaped the business environment in all the three member countries.

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