Broom Industry Research Paper Example | Topics and Well Written Essays - 1500 words

Broom Industry - Research Paper Example In the case of the broom-corn broom, it was pointed out that by 1996, there were only about 600 nationwide employees for the broom industry in the United States. Of the total imports in 1991, Mexico supplied 52% or roughly 11% of the total consumption. Panama supplied 14% of the total import or estimated 3% of the total US consumption, Honduras represented 10% of the total import or roughly 2% of total consumed. Hungary held 13% of the total import and represents about 3% of the total 1991 US consumption. In consideration of the presented data, there is a levelling and balancing of market share as an effect of the NAFTA. It is expected that lifting of tariffs allows exchange of goods and services that will give a chance for lower cost products to compete with higher costing product . Below summarises that effect of NAFTA on the broom-corn broom: Imports come from Mexico, Honduras, Panama, Colombia and Hungary. The total import in 1991 was about 20.1% of the apparent consumption, with US supplying about 79%. Import fell by roughly 19% by 1992 with US sourced at 81%. Import rose at 23% by 1993, decreasing US counterpart to 76%. By 1994, total consumption grew but import also grew at 29% while US suppliers were able to ship only about 70%. Likewise, the trend of continued import growth in 1995 had imports garner a total of 36% of the market share as compared to the US shipment of only about 63%. The effects of the The Congressional Budget Office (CBO) reported that NAFTA had a comparatively small but positive effect on US exports to Mexico which ranges from 2.2 percent in 1994 to 11.3 percent in 2001 with a parallel result for US imports from Mexico that grew from 1.9 % in 1994 to 7.7% in 2001. In fact, considering these figures, the US gained more as the balance of trade in goods had been considerably small, of which decline were noted since 1993 attributed to the peso crash in late 1994, the associated Mexican recession in late 2000, and the prolonged US economic boom from 1990s through 2000 (CBO, 2002). Below are the indicative charts presented by CBO: U.S. Goods Trade with Mexico with and Without NAFTA (In billions of dollars) Source: Congressional Budget Office using data from the Bureau of the Census for actual values and projections from CBO's model for other values. Likewise, the trade balance is illustrated in the following table below: Effects of NAFTA on U.S. Goods Trade w