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Nafta In Marketing Essay

1282 words - 6 pages

II. Please discuss, analyze, explain, and clarify the reasons you would sell new products to Mexico, if you were an American or a Canadian seller. Please see Chapter 9 in your textbook, especially pp. 263 – 265. How does the North American Free Trade Agreement (NAFTA) affect your decisions regarding offering the four P’s of marketing (product, place, promotion, and price) of selling new computers or automobiles in the traditionally closed Mexican consumer market. Do you sell high price or low price computers to Mexicans in Mexico? Or in America, on the boarder between Mexico and United States, e.g. Laredo, Texas? Do you sell high price or low price automobiles/tracks to Mexicans in Mexico or in the United States?

The main goal of NAFTA agreement was to eliminate trade barriers and open the door for investment among the member countries - the U.S., Canada, and Mexico. The differences between the economies of three countries presented the big space for benefiting from the agreement. Thus, Mexico took advantage of improving economic situation in the country and reducing the poverty rate by creating more workplaces. The U.S. and Canada got an access to enter Mexican market and hence the opportunity to align export and import procedures with the country. North American Free Trade Agreement (NAFTA) allowed Mexico to speed up the economy development process in the country. Due to the increase of the investment into industrial and services sectors of the country, the unemployment rate was reduced, and the overall level of GDP increased. NAFTA allowed exporting the goods from America and Canada to Mexico with the tariffs and trade barriers eliminated. The Mexico got an access to enter the U.S. market, which represents 80% of Mexican export. However, NAFTA has both advantages and disadvantages. Still, there are some disagreements between the countries regarding the free access of Mexican trucks to U.S. roads and legal and illegal immigration issues. Mexican market is quite attractive for the U.S. and Canada because it is a fast-growing market with constantly increasing customer demand. If we were American or Canadian sellers, we would sell new products to Mexico due to number of reasons. First, to enrich our export and investment opportunities – as EconomyWatch states, Mexican Market is “the fifth-largest country in the Americas and the fourteenth-largest in the world. It is the 11th most populous country in the world and the largest Spanish-speaking country in the world… Mexico is categorized as an upper middle-income country and is characterized by a free market economic structure.” Also Mexico “has the highest per capita income in nominal terms in Latin America and is the twelfth-largest economy in the whole world when measured by Gross Domestic Product (GDP) in Purchasing Power Parity (PPP).” Mexico enjoys high levels of business freedom, fiscal freedom, and trade freedom, freedom from government, property rights and monetary freedom and freedom for...

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