International Trade and NAFTA Research Paper Example | Topics and Well Written Essays - 1250 words

International Trade and NAFTA - Research Paper Example International trade revolves around many Disadvantages as well which are given below:1. International Trade can sometimes increase your expenses for Example, in certain cases you will have to hire additional staff for the procedure of import and export 2. Can result in trade deficit (negative balance in balance of trade) this takes place when there are more imports and comparatively less exports3. In certain cases create conflicts between two countries 4. In case of exporting/importing goods it increases the additional cost of Packaging and traveling 5. In certain cases discourage the local manufactures and prove to be unjust for them. For example, a local manufacturer produced 500 shirts and they are available in market for $ 40 each, where as someone imported 500 shirts and the marginal cost of each shirt was lesser than the local manufacturer because of Comparative Advantage and hence the imported shirts are available for $ 30 each in the market. Because of this the local manufact urer will face great loss and might get discouraged.6. Create unemployment in the country, if you start importing more then there will be less industries, mills, and factories in the country this might result in unemployment7. Increase dependency on other countries  NAFTA was created to make trade and investment easier and more accessible between United States, Canada and Mexico and to encourage free trade.   1.  One of the major positive effects of NAFTA was increase of trade between United States,Canada and Mà ©xico.