The economic reasoning is to improve each of the countries in order to be competitive with the worlds strongest. America would definitely not want the European nations to grow larger than they would, economically. Politically, the nations want to strengthen among themselves. They would benefit from stronger relationships and more communication. Technologically, the communications and computer fields can improve within the less advanced countries by gaining from the IT companies that come to their nation. Communication is made simpler and less expensive because of new technology and increasing competition. This allows businesses to be cost effective in globalization. The distance between these three countries allows the integration to be more simplified. As neighbors, they can use each other's resources and strengths (Hill, 2000).
Role of Mexico in NAFTA.
The country has increased exports into the US since NAFTA. The US has also increased exports to Mexico. The US is benefiting from savings in labor and passing the saving to its consumers. Mexico is acquiring more money through more work and sales of products to the US and is now able to purchase more US goods. September eleventh tragedy brought uncertainty to many countries. Mexico is no exception. Fortunately, with the established communication and relationship between leaders, they are weathering the storm. There is great opportunity for a textile company to grow by opening plant in Mexico. First of all, this type of business would be saving money in production by paying less expensive labor. Also, a company with an American label would be able to open up retail stores in Mexico and still be able to make a profit selling its product at a lower price. It is evident that Mexican people enjoy buying American products and if a product already has a big name brand, this would enable a company to have a market for their product.