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Assignment 3

This document summarizes a student's analysis of a case study on NAFTA's trucking provisions. The student addresses four questions: 1) The potential economic benefits of allowing Mexican trucks to operate in the US include cost savings for Mexican companies and increased business for US insurance firms. 2) The American Teamsters union objected due to safety concerns and worries about increased competition from Mexican trucks. 3) It did not make sense for the US to impose tariffs instead of allowing Mexican truck access, as retaliation was not the right approach. 4) The Obama administration likely brokered a deal to reduce trade tensions and provide economic advantages for Mexican companies exporting to the US market.

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Victor Quiroga
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133 views

Assignment 3

This document summarizes a student's analysis of a case study on NAFTA's trucking provisions. The student addresses four questions: 1) The potential economic benefits of allowing Mexican trucks to operate in the US include cost savings for Mexican companies and increased business for US insurance firms. 2) The American Teamsters union objected due to safety concerns and worries about increased competition from Mexican trucks. 3) It did not make sense for the US to impose tariffs instead of allowing Mexican truck access, as retaliation was not the right approach. 4) The Obama administration likely brokered a deal to reduce trade tensions and provide economic advantages for Mexican companies exporting to the US market.

Uploaded by

Victor Quiroga
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Reporte

Nombre: Matrícula:
Victor Antonio Moreno Quiroga 2869724

Nombre del curso: Nombre del profesor:


International Environments and Efraín Antonio Lara Tinajero
Business Operations
Módulo: Actividad:
2 Assignment 3
Fecha: 2/21/2018
Bibliografía:
Tecmilenio 2019

https://miscursos.tecmilenio.mx/ultra/courses/_144240_1/cl/outline

Case analysis: NAFTA, trucking and the Mexican economic life.


https://s3.us-east-1.amazonaws.com/blackboard.learn.
Now answer these four questions:
1. What are the potential economic benefits of the trucking provisions in the NAFTA
treaty? Who benefits? Who might lose?
When crossing to the United States, Mexico is no longer required to unload their truck so
they can load an American truck. This would cost a lot more money in their expense. As of
right now it’s a win-win situation, Mexican trucking companies will save money by not
unloading and the US will make money with their insurance that it is obligatory.

2. What do you think motivated the American Teamsters to object the trucking
provisions of NAFTA? Are these objections fair? Why did the US Congress initially
align itself with the Teamsters? Do you think this was a diplomatic failure for Mexico?

The Teamsters were objected to the trucking provisions of NAFTA due to safety regulatory
reasons. The Mexican trucks are required to meet US standards so they can traffic through
the states. The Teamsters are now worried that the will have competition that the Mexican
trucking company will induce.

3. Did it make sense for the United States to bear the costs of punitive tariffs as
allowed for under NAFTA, as opposed to letting Mexican trucks enter the USA?
What was the official position adopted by the Mexican government? Was a
retaliation the right answer?
The relation between the two countries was the right answer, It made no sense to switch
trucks on the border. Both the US and Mexican companies should be benefited from the
treaty.

4. Why do you think the Obama administration brokered a deal with Mexico to finally
allow Mexican truck drivers to access the United States? As a Mexican citizen, do
you find that deal reasonable?
Reporte
As a Mexican citizen, the treaty is a good idea. Providing the advantages to the
Mexican companies to export their goods throughout the US. A disadvantage to this
would probably be the illegal import of drugs or guns to the United States. Special
measurements should be taken whenever exporting goods.

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