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Essay Available:
Pages:
2 pages/≈550 words
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No Sources
Level:
APA
Subject:
Business & Marketing
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 8.64
Topic:

The Line between USMCA and NAFTA: A Tier 2 Companies’ Perspective (Essay Sample)

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The Line between USMCA and NAFTA: A Tier 2 Companies’ Perspective
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The Line between USMCA and NAFTA: A Tier 2 Companies’ Perspective
USMCA bears considerable similarities with while still differing markedly from its predecessor – NAFTA. The first difference regards car manufacturing. Under USMCA, North America will be required to produce 75% of all automobiles for the same market as the condition for avoiding tariffs;40 percent of the chunk will be reserved for automakers paying an average wage of $16/hour. On the other hand, NAFTA required that North America produce62.5 percent of all automobiles sold in the trade zone (Donnan, Mayeda, Leonard, & Lin, 2018). Additionally, it had no minimum wage requirement. Another contrast is that the new trilateral trade agreement opens up Canada’s dairy market. Notably, NAFTA did not provide any guidelines for opening the milk market for foreign competition. For quite a long time, the U.S. had complained about Canada’s system of domestic quotas that rendered it difficult for foreign dairy products to compete fairly.

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