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1994

Definition

In this context, 1994 refers to the year when the North American Free Trade Agreement (NAFTA) was established between Canada, Mexico, and the United States. NAFTA aimed at reducing barriers to trade among these three countries by eliminating tariffs on most goods traded between them.

Analogy

Imagine you are hosting a party in 1994. You invite your closest neighbors - Canada and Mexico - over for some fun activities without any entry fees or restrictions at your house. This represents how NAFTA allowed easier access for goods from Canada and Mexico into the United States without significant barriers.

Related terms

Globalization: Globalization refers to the increasing interconnectedness of economies around the world through various forms of integration such as international trade, investment flows, cultural exchanges, etc.

Protectionism: Protectionism is an economic policy that aims to protect domestic industries and businesses from foreign competition by imposing restrictions such as tariffs or quotas on imported goods.

Bilateral trade agreement: A bilateral trade agreement is a trade deal between two countries that sets terms and conditions for their mutual trade.