NAFTA Essay by writingsensation

This paper explains that, a decade after the enactment of the North American Free Trade Agreement (NAFTA) creating a borderless economy, Mexico has benefited from free trade but problems remain if it is to compete effectively with the rest of the world. The author points out that, the unemployment rate is close to zero in northern Mexico where manufacturing still is concentrated; however, manufacturing facilities are spreading out to other parts of the country. The paper stresses that, in spite of the vast improvements in the last ten years, Mexico still has some serious challenges ahead such as (1) the need to create one million new jobs each year in order to absorb the young workers entering the market and (2) smaller companies have trouble upgrading technology because of higher borrowing costs.