Course: Business in North America (United States Canada Mexico NAFTA)

Course summary (Doing business in North America):
Economy. Foreign trade. Miami, New York, Florida, Toronto. North America free trade agreement.

In January 1994, Mexico joined Canada and the United States in the North American Free Trade Agreement (NAFTA), which will phase out all tariffs over a 15-year period. Under NAFTA, merchandise trade between the U.S., Canada and Mexico has tripled, reaching US$946.1 billion in 2008. Today NAFTA covers a North American economy with a combined output of US$17.0 trillion; the NAFTA partners exchange about US$2.6 billion in goods each day—that’s about US$108 million per hour.

The NAFTA region is home to 444.1 million people, 33.3 million of whom live in Canada, 304.1 million in the United States, and 106.7 million in Mexico.

The United States has the largest and most technologically powerful economy in the world. The United States is the largest market in the world for computer hardware products. The U.S. software market is the largest in the world. The U.S. domestic market for machine tools is the third largest in the world behind China and Japan.

In 2007, trade with countries that the U.S. has Free trade agreements was significantly greater than their relative share of the global economy: although comprising 7.5% of global GDP (not including the U.S.), those countries accounted for over 42% of U.S. Exports.

U.S. Exports of goods and services increased by 3.2 percent in March 2010 to $147.9 billion since February 2010, while imports increased 3.1 percent to $188.3 billion over the same period. In March 2010, the monthly U.S. goods and services trade deficit increased by 2.5 percent to $40.4 billion when compared to February 2010.

The United States is the world’s largest recipient of FDI. More than $325.3 billion in FDI flowed into the United States in 2008, which is a 37 percent increase from 2007. The $2.1 trillion stock of FDI in the United States at the end of 2008 is the equivalent of approximately 16 percent of U.S. gross domestic product (GDP).

The New York metropolitan area’s gross metropolitan product was over $1.2 trillion in 2007, exceeding the GDP of many nations. New York ranks as the fifteenth largest economy in the world. New York is ranked second in the nation in terms of the number of Fortune 500 companies headquartered in the State, according to Fortune Magazine, 2008, with a total of 56. New York City has one of the world's largest international business communities.

Miami - Florida's economic growth is one of the success drivers for businesses that choose to locate in Florida. If it were its own country, Florida would be the 19th largest economy in the world.

California produces more than $1.6 trillion in goods and services annually, making the state the eighth largest economy in the world. California is the prime hemispheric crossroad for trade and investment in the United States with annual exports totaling over $120 billion. California continues to be the nation's leading high-tech state. If California were a nation, its economy would be the Eighth largest in the world.

Canada is considered one of the world’s safest countries to invest, due to the relatively mild slowdown experienced as a result of the global credit crisis. Canada is the top-ranked country in the OECD for both the lowest number of procedures and the shortest duration for completion (3 days) to establish an industrial or commercial business, according to the World Bank Group.

Canada’s global share of aerospace activity has tripled in the last 20 years, making Canada the world’s 5th largest aerospace producer. Canada is the world’s fourth-largest exporter of agricultural products; is among the Top 10 automotive countries and the 3rd largest exporter of automotive products after Japan and the U.S. Nine of the top 10 chemical companies in the world have production facilities in Canada.

With the greatest population concentration, close proximity to the massive US market (Los Angeles: 4,040 Km; New York 788 KM) and diverse industrial strengths, Ontario (Toronto) has quickly become the engine of the Canadian economy and a home for a broad range of multinational operations. Ontario is a major trading economy and exports more per capita than Canada and the other G7 countries.

Even though it is not a country, the scope of the province of Quebec's economy compares with that of Portugal. Quebec's economy therefore ranks 50 most important in the world, and 21st in comparaison with the OECD countries.

With 105 million people, Mexico is the world's 10th biggest economy and the 7th most important commercial trader. Mexico has signed more free trade agreements (FTAs) than any other country in the world. To date, Mexico has signed FTAs with 32 countries and is in preliminary negotiations with 6 more. Foreign direct investment had a very favorable performance for Mexico prompted by the negotiation of Free trade agreements, the tax discord with the in bond assembling industry, new changes in the PITEX and Maquila programs.

Business, North America, Mexico, Canada, United States, NAFTA, Treaty, Free trade, Americas, North, Economy, foreign trade, Miami, New York, Florida, Toronto