1. Nature (characteristics) of Morocco's economyMorocco, a nation in the northern part of Africa bordering the North Atlantic Ocean and the Mediterranean Sea, has demonstrated improvements in its economic landscape in recent years. The nation's gross domestic product for the year ending 2013 was $180 billion (reported in dollars), an increase of $7.8 billion over 2012 and placing the nation 60th among nations of the world (Central Intelligence Agency, 2014, Economy). Gross domestic product is the value of all final goods and services produced within a nation in a given year (Central Intelligence Agency, 2014, References & Definitions). These figures demonstrate that Morocco increased its production from 2012 to 2013, thus reinforcing the fact that the nation's economy has shown signs of growth. In 2012 alone, the Moroccan economy grew by 3.2%, driven mainly by domestic consumption and public investments (African Development Bank Group, 2014, para. 1). Financing the economy and its growth remains a challenge, however, the government has already begun to look for ways to increase investment within the nation and develop strong relationships with other nations. The Moroccan economy is considered a market-oriented economy, where the economy operates through voluntary exchange between market members without being controlled by a central authority (Central Intelligence Agency, 2014, Economy, par.1). With the nation's proximity to Europe and the Middle East, they were able to capitalize and use the low cost of labor to build an open market. Since the economy functions as an open market, foreign investors can exploit the economic landscape to establish a presence rather easily. Morocco has a government-mandated minimum wage, which is 10.1...middle of paper...officials hope the FTA will help accelerate and stabilize the country's economic reform process by allowing for greater competition and the formation of business partnerships in a wide variety of key sectors (e.g. insurance and banking) (US-Morocco FTA, 2004, para. 1). Morocco is currently becoming more modernized and globalized, as there is an increase in government regulations relating to the labor code and a development of commercial courts and customs services. American companies are already actively operating in Morocco. As much as $2.2 billion has been invested in the nation through the management of 120 American companies, such as Fruit of the Loom and Dell (USA-Morocco FTA, 2004, para.3). The free trade agreement between Morocco and the United States will allow for increased competition with European trading partners who must now consider American operations active and engaged.