Thisresearch paper is broadly divided into five sections the statementof the hypothesis or thesis statement, the analysis, the conclusionand the reference list.

Thestatement of hypothesis or thesis statement

  • This is covered under the abstract sub-section. Under this sub-section the scope and the aim of the research question are explained. The research paper entails an in depth examination of the behavior of financial markets and institutions under NAFTA.

  • NAFTA is an abbreviation for North American Free Trade Agreement, a free trade agreement involving three countries of United States, Mexico and Canada.

  • Under this section the scope of research question is given. In addition a brief description of the methodology used to collect data is given together with how the results will be discussed and analyzed.

  • Under this section the direction of the research paper is outlined and the exact objective of the research paper is set. The overview of the research problem is given and the framework to achieve its objective is laid out.

  • In this section the position of the writer is given with regard to the research problem in question. This research paper discusses the massive loss of well-paying jobs in the United States and how it has caused increased trade deficits.

  • Also the paper seeks to find out whether the provisions in the financial section of NAFTA can be interpreted from the other terms. This is the statement of intent from the writer that clarifies the research background giving relevant reasons as to why the particular area of research was chosen.


  • Under this section, the methodology used to collect data is used and from the results appropriate discussion is made.

  • In the analysis of this research problem, the secondary data sources on the North American Free Trade Agreement (NAFTA) are used. This data is analyzed in the manner with which it has impacted the behavior of the financial markets and the institutions among the three countries.

  • Data collection will be obtained from different stakeholders in two levels, the first level involves the industries such as the textiles, farming and Manufacturing which has been affected by the NAFTA policies. The second level involves the citizens within the three countries.

  • In depth explanation concerning the increased trade deficits and the certified loss of good paying jobs is given. The specific example of United States is used to illustrate the rising impact of NAFTA on labor and trade. Institution behavior from 1940’S and 1950’S is analyzed and comparison made with the current behavior of the institution in this three countries.

  • Apart from the rising cases of management issues within companies, NAFTA’s impact on shifting of jobs southwards is given. Further explanation on how this shift is precipitating significant change of financial markets in the United States is provided.

  • In this research paper, the ability of NAFTA to affect the organization behavior and jobs distribution is examined as the policy that can be used to decrease jobs in the United States and reduce product prices.

  • The paper discusses in detail the effects of removing border tariffs within the three countries. Analyzing how it is facilitating free flow of goods and services and how the investors from each member country freely establish firms without having to undergo intense regulation checks.

  • The United States has greatly benefited from this convention, receiving the highest financial flows more than any other country in the world since the inception of NAFTA convention.

  • What is more is the spotlight assessment of the existing regulations among the countries. In essence NAFTA has significantly impacted the financial markets and the institution behavior of the three member countries.


  • It apparent from this research that the North American Free Trade Agreement (NAFTA) greatly impacted the behavior of the financial market and the associated institutions between the three countries.

  • Due to the increased cross-border movement and trade, several prominent business owners and investors have shifted their business base to the countries having cheap labor. Most workers have shifted south to Mexico especially from the United States causing high number of laid off of employees.

  • Therefore, the liberalized movement of goods and services within the three countries has significantly affected the behavior of the financial markets and the associated institutions.


  • It is the last section of the paper and it contains all the references used while carrying out the analysis of the research question.