The NAFTA Market and Management
Training for Successful Entry
V. H. (MANEK) KIRPALANI
NAFTA's economic and market size is analyzed, and the significance of NAFTA for world trade and foreign direct investment is pointed out. The management education and training requirements for outside international managers who wish to effectively lead their firms into NAFTA are discussed in detail. Coverage extends to content, methods of delivery, location of training, and type of instructors.
NAFTA was formed primarily in response to the perceived threat that the European Union (EU) would block off exports for nations outside the EU. The EU is further ahead than North America on the road to integration. While both regions have free movement of capital, the EU has a customs union and a common external tariff, and is close to achieving a common market with EU-wide common standards and the free movement of people. It is also moving in the direction of an economic union and a harmonizing of national economic policies.
The world is trade dependent. Exports of goods and services account for over 15 percent of the world's GNP. Economic prosperity is inextricably tied to international trade and, in many cases, foreign direct investment. This chapter first looks at the prospects occasioned by NAFTA; then it focuses on management education and training for successful entry into the NAFTA markets. NAFTA will allow its member countries to achieve economies of scale in traditional exporting industries and wider scope in the new technology-driven sectors of the economy. The standard of living among the member nations should rise as they begin to use their comparative advantages and other competencies to specialize their exports and optimally allocate resources. Thus, they will likely purchase an increased level of imports. The Adam Smith adage remains gen-