The North America Free Trade Agreement (NAFTA) has significantly influenced the economies of Mexico, Canada, and the United States since 1994. Therefore, it is apparent that renegotiating it can lead to serious consequences, both positive and negative. It is probable that many new work opportunities, especially in heavy manufacturing, would emerge in the U.S. if NAFTA were reconsidered. At the same time, multiple Mexicans would lose their jobs and could no longer provide for their families. The U.S. workers would also have the possibility to receive higher salaries, though prices for a wide range of services and goods would increase. Moreover, the interactions between the three countries would become less intense, it would lead to serious financial issues affecting their economies, and diplomatic relations might worsen. However, Mexican business owners and farmers would get more opportunities. In general, it is evident that NAFTA has many advantages and disadvantages, and renegotiating it would cause both positive and negative outcomes.
Furthermore, the emergence of a single market and currency within the European Union (EU) has influenced the economies of many countries. It united them both politically and economically, increasing competition simultaneously. Gadomski (2019) notes, “the single currency did not lead to a sustained acceleration of growth, although it did not hurt growth in countries with a sufficiently flexible economy and low level of debt” (para. 32). The EU has endeavored to boost economic growth within its borders by removing various obstacles, creating new jobs, and effectively investing financial resources. Despite its failures, it has considerably increased competition within European countries, as well as worldwide. The reason for it is that the EU has created multiple opportunities and eliminated difficulties preventing businesses from growing.
Gadomski, W. (2019). The pros and cons of the Eurozone. Observator Finansowy. Web.