Global Trade

Global trade is increasing

• Why? What is good about it?• -it makes better technology available• -it creates more jobs (importers-exporters)• -government gets more taxes (from imports)• -consumers will get lower prices from

increased competition

The world favors international trade

• GATT—a world wide agreement to set low tariffs

• WTO (World Trade Organization)—more than 140 nations agree on trading rules

The US favors international trade

• North American Free Trade Agreement (NAFTA)– The US, Mexico, and Canada agreed to eliminate

tariff restrictions in trade between the nations

List the pros and cons of NAFTA regarding the United States companies and workers

Other large trade agreements

• ASEAN—10 Asian nations that agreed on eliminating trade restrictions between nations

• European Union—15 European nations that eliminated trade restictions and went to a common currency