Nafta crown Mexico a super power in production. However, some of the developing economies should not follow suit because some of the policies did not work. For instance the application of free trade, which is referred to as neoliberalism in Mexico needs to be scraped out due to the few tariffs. This will give way to better growth and development strategies for the economy. Compared to the nations that did not follow the same economic directions, Nafta was declared a total economic failure. Jobs in the production sector in Mexico increased in number. The only problem was that the jobs could not cover for the losses that sectors like grain production had incurred. One of the good experiences was that there was an increase in foreign trade as well as domestic trade. The saddest outcome was that despite the many opportunities that the trade brought about, there were no jobs and statistics showed little, if any, economic growth then.
At the end of all these, Mexico recorded negative growth rates. This means that there were fewer growth rates than the previous years. It had actually been bypassed by other countries whose economy had been low before and they were trying to improve it. These nations had grown in terms of national economy. It was like a parallel line had been drawn between foreign trade and the economy in Mexico. This was because as the growth in foreign economy went up, that of Mexico went further down. In as much as every other company could be pleased with an increase in foreign investments, Mexico was not. This was because with every increase in foreign investment, it meant a displaced domestic investment. This could translate to no jobs and a low rate of development in the entire country. The economy had gone too low that the levels were not average enough to call for a commendable growth in the economy. For a growing economy like that of China the investment in economic growth and development is thirty five percent. Compared to that of Mexico, it is quite high since Mexico has an investment of nineteen percent. For a nation to have the ability and power to drive economic growth, they should have at least twenty five percent and not lower than that.
Competition led to the profits and losses that Mexico recorded annually. This was led by competition from globalization. Globalization provides markets with losers and gainers as well. The differences in globalization are due to technological advancements as well as automated operations and business transactions. Obviously, countries that invest more on these three aspects have a higher chance for economic growth. The levels of literacy also affect the economic growth of nations in that the nations whose population is educated, they are better placed in economic growth. To improve the economy of nations facing the same problems as Mexico, most nations are turning to other forms of trade. In the United States, the number of jobs increases after the implementation of Nafta policies. Again, there were twenty three to twenty four new jobs during this time, implying that the pact favored some countries, leaving out others. The pact therefore led to different economies, production costs, growth in economies as well as problems in the domestic investments, thanks to Nafta.
