Compare and contrast the influence on employment policy of the Essay

Compare and contrast the influence on employment policy of the European Union and NAFTA on their respective member states. Evaluate their likely impact on the practice of International HRM - Essay Example nd being two of the world’s largest economies for instance, there are widespread differences in terms of complexity in decision making process and distinctiveness in terms of policies and organizational framework. However, the existence of such apparent similarities as well as differences to certain extent do not prevent or hamper the objective of this paper that seeks to offer a comparison between the two unions. This paper examines, discusses and analyses the influence on employment policy of the European Union (EU) and North American Free Trade Agreement (NAFTA) on their respective member states and also the subsequent and likely impact on the practice of international HRM. It also offers an overview of the impact of EU and NAFTA’s employment policies on the labor market of their respective member states. The North American Free Trade Agreement or NAFTA, is a trilateral free trade deal which came into force in January 1994, which was established with an aim of eradicating the huge amount of tariffs that were levied on products or goods which formed a part of trade between the three North American countries namely Mexico, Canada and the United States1 while the European Union or the EU is a conglomeration of several sovereign states merged together for various economic benefits. The main goal of the EU is the progressive integration of Member States economic and political systems and the establishment of a single market based on the free movement of goods, people, money and services2. This paper discusses the impact of such associations on the labor market, economy, and employment and discusses key concerns faced by them. It further discusses the extent of benefits, if any, or challenges and opportunities faced by them and trace the factors that highlight the similarities as well as differences between them. The European Union is constantly facing challenges from the enlargement of the Central and Eastern European states3 on account of transition as well