Should NAFTA Expand?: An Analysis of Expansion (Economics Articles) (North American Free Trade Agreement‪)‬

ABSTRACT The emerging global economy differs from the international economy in that resources are becoming more mobile and intra-industry trade is becoming more important. Evidence is presented that these developments require compatibility and harmonization of technical and policy standards. It is easier to harmonize standards on a regional level than globally; thus the rise of regional integration movements (Atkinson, 1998). This idea has led many to support the expansion of NAFTA to include other regions, such as South America. There are potential advantages and disadvantages to expanding free trade agreements. Therefore, several considerations must be taken into account before the U.S. enters such agreements. However, the U.S. must actively seek to expand its trade agreements with other countries or risk losing influence over decision-making processes in achieving globalization.