Regional Paper

Regional Paper

Isabel Porras

University of Phoenix

MGT 448 - Global Business Strategies

Pablo Jimenez

May 15, 2007

Regional Paper

Countries from Central America have been trying to improve competitive improvements by joining together their economies to make a larger profitable business that is associated with the free trade agreements with superior markets. As soon as Central America was introduced to the strength of the U.S.-Central American Free Trade Agreement (CAFTA), a high trade priority that the second term of President Bush's Administration helped create for regions like Dominican Republic, will join the historic trade with the United States. Mexico and Panama also have their free trade agreement with the United States along with their neighbors from Central American; which is essential for their expanding agendas. In the course of trade-led, diversified economic growth, the countries from Central America are indicating their true dedication to create and expand their financial opportunities that will facilitate the distribution of prosperity and elevate the way of living for everyone in Central America.

Free trade and economic development have become the starters of expansion for many countries, even though they exactly resolve differences. Central America's economy is growing slowing, but showing some improvement, although it is still too low to handle an aggressive anti-poverty agenda. Unfortunately, the profits of economic increases are not stretching equally between the residents of these countries. Other disputes have came up that consist in the risk of loss of profits and the change of rural jobs were brought when CAFTA was established and of course, termination of the Multi-Fiber Agreement. Additional challenges that CAFTA faces are customs integration and harmonization of tax, fiscal, sanitary and phyto-sanitary (SPS), and ecological procedures as well as board of the Meso-American Biological Corridor.

In order to gain benefits from the CAFTA as well as from further global trade opportunities, Central American and Mexican governments have had the need to improve their they way they compete by lowering operation expenses across the borders; harmonizing regional commercial, tax, environmental, and labor laws and policies; along with using the natural resources that these countries promote as an example could be green market products that are use in third-party certifications. In changing coffee production into an excellent quality and the specialty of the marketplace along by country farming the will diversify programs, both governments from these countries are suppose to give practical financial choices for these entire agriculture farm. The natural resources from these countries are a huge gift as well as the environment that supply proportional compensation that the countries ought to benefit from moving forward to accomplish an expansion.

The conflict towards CAFTA cannot be release as an encounter involving large industries and immense manual labor. This is not considered free trade Democrats disappearing, but it not regarding Democratic leaders either looking forward to distribute a defeat to the leader. This engages matters more extensive than the ones that connect to sugar or textiles.

As it is being notice in the countries of Latin America and Central America, the settlement of globalization is not running smoothly thru the citizens. People in these countries have progressively more reacted by voting at the election box or just by protesting in the streets. By this reaction the people have elevated the concern about CAFTA, and have made the citizens reconsider if the terms of expanding the market are needed in order to create and to multiply the profit, or simply believe that the business expansion will expand on its own.

The people who helped to create the trade agreement and assisted to form and make the trade agreements with countries like Caribbean, Africa, Jordan and Cambodia which in the last 10 years they have been directing another disagreement with CAFTA. The United States will