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Consequences of NAFTA Trade Agreement for the Car Industry in North America
Dobeš, Petr ; Kozák, Kryštof (advisor) ; Fiřtová, Magdalena (referee)
The subject of this thesis is the North American Free Trade Agreement (NAFTA), signed between the United States of America, Canada and Mexico and its impact on the automotive industry in North America between the years 1994, when NAFTA came into force, and 2009, when two major American car manufacturers, General Motors and Chrysler, went bankrupt during the global-scale recession and the industry changed significantly. The thesis is based on the theory of comparative advantages, as it was described by a British economist David Ricardo in the 19th century. It subscribes to the general principle that a free trade is beneficial to all engaged parties, because it enables more effective allocation of resources and provides for more specialization of production. The thesis argues NAFTA was a complex and ambitious international trade deal that had profound impact on the evolution of this branch of industry in the United States, Canada and Mexico, however its impact on the economy as a whole was limited and many of the changes, attributed to NAFTA, would likely have happened even without its passage due to the natural process of evolution of the industry and modernization. The creation of a continent-wide zone of free trade enabled local and foreign car makers to establish international supply chains that...
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Consequences of NAFTA Trade Agreement for the Car Industry in North America
Dobeš, Petr ; Kozák, Kryštof (advisor) ; Fiřtová, Magdalena (referee)
The subject of this thesis is the North American Free Trade Agreement (NAFTA), signed between the United States of America, Canada and Mexico and its impact on the automotive industry in North America between the years 1994, when NAFTA came into force, and 2009, when two major American car manufacturers, General Motors and Chrysler, went bankrupt during the global-scale recession and the industry changed significantly. The thesis is based on the theory of comparative advantages, as it was described by a British economist David Ricardo in the 19th century. It subscribes to the general principle that a free trade is beneficial to all engaged parties, because it enables more effective allocation of resources and provides for more specialization of production. The thesis argues NAFTA was a complex and ambitious international trade deal that had profound impact on the evolution of this branch of industry in the United States, Canada and Mexico, however its impact on the economy as a whole was limited and many of the changes, attributed to NAFTA, would likely have happened even without its passage due to the natural process of evolution of the industry and modernization. The creation of a continent-wide zone of free trade enabled local and foreign car makers to establish international supply chains that...
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