Free Trade in the Americas
Show Less

Free Trade in the Americas

Economic and Political Issues for Governments and Firms

Edited by Sidney Weintraub, Alan M. Rugman and Gavin Boyd

This book examines the Free Trade Area of the Americas (FTAA), an ambitious venture in regional market integration which builds on the principles of the North American Free Trade Agreement. It assesses the long-term corporate and public policy measures to cope with the increased monetary, fiscal and structural interdependence that will be required if the benefits of the FTAA are to be realized.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 4: Economic integration in North America: implications for the Americas

Alan M. Rugman


Alan M. Rugman SUMMARY In this chapter I build on the ten years of experience of economic integration that companies have enjoyed under the North American Free Trade Agreement (NAFTA). This started on 1 January 1994, but was negotiated and largely in its final shape for all of 1993. The role of foreign direct investment (FDI) undertaken by multinational enterprises (MNEs) has been of critical importance in NAFTA. I examine the economic integration of Canada and the United States and draw implications for all of the Americas. The increasing degree of intraregional trade and FDI in North America, both before and during NAFTA, is likely to be repeated across the Americas in the future. INTRODUCTION The Free Trade Area of the Americas (FTAA) is going to build on the basic principles of NAFTA. There are two of these: first is the negotiated reduction of tariffs on mainly manufactured products (with agriculture and most of traded services exempted); second is the principle of national treatment, again for manufacturing but also for resource investment (and with most of the service sectors exempted). The nature of NAFTA, and its implications for corporate strategy, have been discussed in Rugman (1994). Logically, the FTAA, being based on NAFTA, will have similar implications for business strategy. Rather than revisit this topic in this chapter, I assess the nature of economic integration under NAFTA over the last ten years. With this focus upon the actual outcome of NAFTA on business strategy, I am then in a better...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.