The relationship that exists between business and government in terms of free trade agreements or global trade is very complex. To a larger extent, the government is more powerful in global trade since the adoption of a mixed economy system (Lehne 100-200). There is a higher degree of private business involvement in the global trade but still the government has to maintain strict regulations on the economy.
International trade organizations have the responsibility of controlling free trade agreements as it can be seen with NAFTA which is an arrangement between Canada, United States, and Mexico. It is clear that the government is more powerful in free trade agreements as it can be seen with Mexico which has signed several free trade agreements (TFAs) over the last decade. Work Cited. Lehne, Richard. Government and Business: American Political Economy in Comparative Perspective. 2nd Ed. Washington DC: Saunders, 2006. Print