The Multinational Effects of the Bilateral Free Trade Agreement Between the United States and Canada

Author

Gerald Ray Allen, Fontbonne College

Year of Award

1990

Degree

Master of Business Administration (MBA)

College

College of Business & Professional Studies

Degree Program

Business

Department

Business Administration

Keywords

FTA, economics, international market, Global Trade, Super BLOC

Abstract

The focus of this research is to evaluate the multinational effects of the 1989 FREE TRADE AGREEMENT (FTA) signed between the United States and Canada.

Topics are presented to highlight the macroeconomic impacts provided by the "Agreement.". Impacts that will test the ability of firms in both countries to use this trade pact to accelerate trade flows and individual company profits by increasing exports in "investment" and "services" to third country traders.

A major premise is that the FTA is a non-protectionist tactic to liberalize trade. As such, this border opening agreement is engineered to revive North America’s corporate competitiveness.

Alternately, in the face of stiff competition in world markets, it is evident that this far reaching "agreement" is important to protect against the further erosion of U.S./Canadian competitiveness. Determining factors are examined to show that in-ward and out-ward effects of global market protectionism and restraint of trade are no longer viable tactics. Economic indicators reveal these historical ways will be continually detrimental to North American business prowess if the FTA is not successful.

The research is a synthesis of professional source journals with excerpts from current and historical literature featuring international market dynamics of free trade. The variety of view points and commentary are important in depicting the new investment environment the "Agreement" is designed to create. Even though this trade pact segregates "investment" in a separate "chapter", the whole agreement is about expansion of investment in new forms of organizational integration and transnational cooperation.

THESIS NOTE The international scene has changed since the author chose this research project in July 1989. In December 1989, the "Berlin Wall" was torn down. That event suddenly changed international business, politics and economics. Consequently, the U.S.-Canada trade relationship, becomes even more important to multinationals as global trading partnerships unfold.

Comments

This thesis was selected for its superior quality, and was suggested as a good example for MBA students to follow.

Document Type

Restricted Thesis

Recommended Citation

Allen, Gerald Ray, "The Multinational Effects of the Bilateral Free Trade Agreement Between the United States and Canada" (1990). All Theses, Dissertations, and Capstone Projects. 508.
https://griffinshare.fontbonne.edu/all-etds/508