North American Industry Classification System (NAICS)
A new business classification system developed through a partnership between the United States, Canada and Mexico. This system allows statistics to be compared for all business activity across North America. All companies are separated into industries defined by businesses that use similar production processes. Investopedia Says:
The NAICS was created to replace the U.S. Standard Industrial Classification (SIC) system to modernize it, so that it would be able to relate to the constantly changing economy. The new system also allows for better comparability between all North American countries, which is important because of the increased trade between NAFTA countries. To ensure that the NAICS will be able to keep pace with changing economic conditions it will be reviewed every 5 years. Related Terms:
Bureau of Census
Bureau of Economic Analysis - BEA
Globalization
Industry
Macroeconomics
North American Free Trade Agreement - NAFTA
Standard Industrial Classification - SIC Code |