Maquiladoras: Manufacturing Poverty in Mexico Essay -- Maquiladoras E

The trend toward a more globalized market has become increasingly developed in the latter half of the twentieth century. Emphasis on knowledge domain trade 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 businesslike allocation of resources (Canas & Coronado). Countries can gain from trade when they specialize according to their comparative advantage. This is, when they create conditions where goods and services can be produced at a lower probability cost than in any other country. Along the same logic, countries can also make large profits by taking advantage of some other countries comparative advantage. A prime example of this is the relationship between Mexico and the United States. Mexico has a comparative advantage over a large majorit y of countries in the world in its abundance of cheap 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 decreased tariffs, unrestricted leases and certain tax exemptions. As a result, corporations have less overhead costs and a greater potential for profits. In this paper I will discuss this phenomenon in several different contexts. First, I will draw on the history of Mexican labor in the United States as it undoubtedly 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, the Nazarene & Coronado, Roberto. Maquiladora Industry Past Present and Fut ure. 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. Volume 14. publication 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