The North American Free Trade Agreement (NAFTA) has contributed to diminishing the Mexican economy because of its dependence on agriculture. Since the introduction of the treaty in 1994, Mexico has been struggling to find an answer to mounting trade deficits in the agriculture sector. However, if Mexico can successfully implement much-needed changes, Mexican farmers may be able to enjoy a prosperous future.

The harsh reality of an economic downturn is that companies must make decisions to perform budget cuts to compensate for diminishing revenues. Budget cuts can be comprised of a combination of sources. These include outsourcing, employee reductions, service reductions, employee benefit changes, organizational realignments, liquidation, or any resourceful techniques to decrease expenditures. Each decision carries its own incentives as well as consequences. Several of these decisions for reducing budget costs will be discussed.