... that was plaguing the US and the unfair advantage the US provided for its self in subsidizing global trade. The administration believed the only way to combat Japanese and European discrimination against US exports, was to break away from fixed exchange rates. The United States is a capital-intensive country, meaning that its inputs consist mostly of machinery, in contrast to labor ... for everyone. With the devaluation of the Mexican peso, U.S. exports to Mexico drastically fell while Mexican exports to the U.S. soared, adding to the already large US trade deficit. NAFTA didn't solve t...

• Word Count: 2952
• Approx Pages: 12
• Grade Level: Undergraduate