Maquiladoras: Manufacturing Poverty in Mexico Essay -- Maquiladoras E

The trend toward a more than globalized market has become increasingly developed in the latter half of the 20th century. Emphasis on world mete out has become a dominant figure in almost every Nations economy. Between 1970 and 2000 world trade has experienced an increase of almost 370 percent. Concurrently, world GDP increased by 150 percent. Trade is beneficial to Nations because it allows the creation of avenues that aid in cost-efficient allocation of resources (Canas & Coronado). Countries can gain from trade when they specialize according to their comparative degree advantage. This is, when they create conditions where goods and services can be produced at a dismount opportunity cost than in any other country. Along the resembling logic, countries can also make large profits by victorious advantage of another countries comparative advantage. A prime example of this is the family relationship between Mexico and the United States. Mexico has a comparative advantage over a large majority of countries in the world in its abundance of two-a-penny labor. Mexico also has fairly underdeveloped environmental protection and labor laws, which allows corporations more leeway in their operations. Additionally, Mexico provides incentives to foreign corporations including reduced tariffs, unrestricted leases and certain assess exemptions. As a result, corporations have less overhead costs and a greater potential for profits. In this paper I will deal this phenomenon in several different contexts. First, I will draw on the history of Mexican labor in the United States as it doubtless set the stage for future labor agreements between these two nations. Second, I will discuss the Maquiladora Program which encouraged United States corporations to relocate their pl... ...ry and Statistics. http//www.solunet-infomex.com.3.The Bracero Program. http//www.farmworkers.org/bracerop.html4.Canas, saviour & Coronado, Roberto. Maquiladora Industry Past Pr esent and Future. El Paso Business Frontier. Issue 2. 2002.5.Maquiladoras Sweatshops by any Other Name. http//www.globalexchange.org/countries/unitedstates/california/dayofthedead/ maquiladoras.html.6.Maquiladoras At a Glance. CorpWatch. June 30, 1999.7.LaBotz, Dan. The Maquiladorization of Mexico. The Multinational Monitor. gaudiness 14. Number 5. May 1993. 8.Chasnoff, Brian. Profit & Poverty Mexicos Maquiladoras. The Daily Texan. 9.Manufacturing in Mexico The Mexican In-Bond (Maquila) Program. Mexico Business Directory. 2000. http//www.mexconnect.com/business/mex2000maquiladora2.html