What if the United States, Mexico, and Canada took the EU's example and joined to form a North American Union? Based on your knowledge of the European Union, describe two setbacks or hurdles that this idea might face.

If a North American Union was created, the biggest problems that would occur would be rapid population shifts, and lower wages because of much-increased competition on the labor market.

Explanation:

A North American Union, by EU's example, would mean that the US, Canada, and Mexico will function as one in many ways. The borders will be open, both for economic actions and for free movement of people. While this may seem good at first sight, it will actually cause some major problems as well.

The US and Canada will face a major population increase in a very short period of time. The people from Mexico will rush to move into these two countries because of better living conditions and more job opportunities, which in turn will cause massive depopulation in Mexico.

On one side, Mexico will face major economic problems because of a sharp decline in its labor force, while on another side, the people in the US and Canada will face problems because there will be tens of millions of new laborers that will offer their services for lower wages. This will lead to tens of millions of people losing their jobs or not being able to find jobs, or if they do, they will have to work for less, meaning that they will be poorer.