NAFTA and The American Auto Industry

Paper Summary:

This paper reviews NAFTA and its effect on the American auto industry. Specifically the researcher examines various theoretical propositions providing analysis of the effects of NAFTA since implementation. The author's aims and objectives include identifying the costs and benefits associated with NAFTA's implementation, as well as identifying future trends and areas for research growth with respect to NAFTA and the automobile industry. The primary research examined includes how NAFTA impacted the U.S. automobile industry as a whole; whether the overall effects of NAFTA on the U.S. automobile industry have been positive or negative; and what the future of the U.S. automobile industry is, based on research gathered regarding NAFTA since its inception.

Outline:
Introduction
Journal Review
Theoretical Discussion of Topic
NAFTA Integration Strategies
Data Analysis
Conclusions

From the Paper:

"Koechlin & Larudee (1992) take an interesting approach reviewing the potential effectives of NAFTA prior to its full inception claiming that the overall costs of NAFTA would likely be too high or negative in nature, postulating that employment would be affected most severely particularly within the U.S. Lastly Globerman & Storer (2005) provide the most recent analysis of free trade and price convergence resulting from NAFTA. The authors adopt economic theory suggesting that liberalization of trade will ultimately result in price convergence. The authors also examine the impacts of convergence on returns to capital and wages, suggesting that multiple explanations exist for the seeming divergence that followed the Canada-U.S. Auto Pact in the early 1960s."

Sample of Sources Used:

• Bustillo, I. (2000). "Overview of economy-wide NAFTA models." International Journal
• of Public Administration, 1: 1443.
• Bybee, J. & Fry, E.H. (2002). "NAFTA 2002: A cost/benefit analysis for the United
• States, Canada and Mexico." Canadian-American Public Policy, 1:1.
• Globerman, S. & Storer, P. (2005). "Canada U.S. Free Trade and Price Convergence in

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