NAFTA
Definition
NAFTA stands for the North American Free Trade Agreement, which is a trade agreement between the United States, Canada, and Mexico. It eliminated most tariffs and trade barriers among these countries.
Analogy
Think of NAFTA as a giant "trade bridge" connecting the three member countries. Before NAFTA, there were toll booths and roadblocks on this bridge, making it difficult to move goods between the countries. But after NAFTA, those toll booths disappeared and traffic flowed freely.
Related terms
Tariffs: Taxes or fees imposed on imported or exported goods.
Free Trade: The unrestricted flow of goods and services between countries without any barriers such as tariffs or quotas.
Globalization: The process of increasing interconnectedness and integration of economies, societies, and cultures worldwide.
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