The main point of the article is that changes are being made that are shifting the way the maquiladora plants are operating. This particular story takes place in Tijuana, however, the changes are affecting all of the maquiladora plants all along the Mexico - United States border. The maquiladora plants are having to make changes because the Mexican government “[cut] some of their tax breaks“ (Mexico’s maquiladoras). In previous years the maquiladora plants had lost a lot of business to Asia where lower wages could be found. Lately, the “rising pay in China“ was bringing jobs back to Mexico (Mexico’s maquiladoras).With the reduction in tax benefits, the maquiladora plants are once again loosing business to other locations.
The United States
A maquiladora is a manufacturing plant based in Mexico where foreign companies import materials and equipment, on a duty free and tariff free basis, for the purposes of processing, manufacturing, or assembling goods which are then exported to other countries. The idea behind these maquiladoras promises a prosperous Mexican society. On paper, it really does seem like NAFTA is living up to expectations; creation of more jobs and a much less unemployment rate. On the surface, there seems to be nothing wrong with what’s going on in Mexico in terms of employment. Everyone has jobs and everyone is getting paid for these jobs, so what’s the issue? Despite all of this, the degrading and terrible working conditions imposed upon the maquiladora workers
maquiladoras were required to locate within 20 miles of an international border or coastline, but to this day the regulation of the maquiladora industries have change a tremendous amount.. In 2000, 57% of the adult population lived in the capital region, in which Mexico City is located, or in surrounding central states. During the 1990s, the share of the population in the border region, in which most maquiladoras are located, rose slightly from 17% to 18%. This small increase in the border population is remarkable, given the dramatic growth in maquiladora employment and in the population of large cities, such as Tijuana and Ciudad Juarez, that occurred in the region. Border employment has grown primarily through firms attracting workers from
that the maquiladora industry led to 1.5 million jobs in Mexican cities. Due to the fact
The one thing that stood out to me in this article was when Javier stated, “He worn a walkie-talkie then in his role as a manager, and it was his job to call everyone back to the line at the end of each break. He had never felt more a part of America than he did in these moments, hearing his own voice over the factory loudspeakers, issuing orders in English.” The reason why this statement stood out to me is because for Javier it seems like his past life was that, and for once, he tasted his piece of the American pie. However, the one thing that made Javier dream false was his status in the United States. Therefore, some of the pros and cons of immigration reform in the U.S... In the case of Javier,
The article, “Displaced People: NAFTA’s Most Important Product”, written by David Bacon for North American Congress on Latin America, discusses how economic crises have caused Mexicans to be displaced. The North American Free Trade Agreement (NAFTA) has caused the price of crops in Mexico to lower so much that there are no economic benefits from planting them. There are around 500,000 indigenous Mexicans from the state of Oaxaca now living in the United States as farmworkers. The article states that between 2000 and 2005, the countryside in Mexico has lost a million and a half jobs. This causes indigenous Mexicans who relied on planting crops to make money to migrate to the United States. Families that cannot migrate to the United States and are now jobless will go hungry as they search for buyers to buy the crops they grow. While the crops they grow continue to lose money value, the price of the food that they need to survive keeps increasing. After Mexico adopted NAFTA, the price of tortillas has more than doubled and companies continue to monopolize tortilla production. Poor Mexicans are left with no ability to make money and
The devaluation of this currency leads to lower costs for the subsidiary, in relation to wages, since the peso has depreciated against the USD during this time period. The facility can purchase Mexican pesos with their USD profits at increasingly appealing exchange rates, and then use these pesos to finance new operations. By doing so, this shows the positive effect of the devaluation of the peso for the Maquiladora Assembly Facility.
First, it is best to explore the origin and function of the maquiladora in the economy. Mexico's Border Industrialization Program of 1966 first established the maquiladoras. The plants must operate within the framework of Mexican laws, and
In the peer-reviewed article Elvia R. Arriola postulates an, “Accountability for murder in the mquiladoras: Linking corporate indifference to gender violence at the U.S. Mexico border” (Arriola, 2007). Arriola describes the treatment of girls and women on the U.S. Mexican border who are employees of the maquiladora, which are a creation of corporations that move over to the U.S. Mexican borders because of the low salaries they pay to their employees due to the North American Free Trade Agreement (NAFTA) between Mexico, the United States, and Canada (1993). In fact, violence, human rights violations, and crimes against women occur more frequently regardless of corporate policies and laws. Additionally, the maquiladoras are a severe indication of Mexico’s corporate and governmental patterns of abuse, harassment, and violence against women who work in the maquiladoras that violate their human
As a major contributor to the global economy, Mexico’s sweatshops have contributed to the United States’ wealth and economic growth. It is the unfortunate truth that many individual workers have suffered as a result of this prosperity. The sweatshops, known as maquiladoras, are in debate because of the ethical and lawful reasoning behind their existence and conditions. How can we, as a First-world nation, allow such industries to exist where people are denied basic and fundamental human rights? What, if any, laws and regulations are put into place for the maquiladoras? Are these laws and regulations hindering, harmful, or helpful? Are they enforced emphatically? If not, how does this affect development? After
The cotton industry in West Texas fears that there will be a struggle in finding field workers if the border is closed. Other regions of the country that depend on agricultural workers to pick their product in time for the market would also be affected. (O’Donnell 26). It has been proven that it is extremely important for the agriculture business to have enough migrant workers to work the fields and in turn provide an economic impact to the region. Agriculture’s need for Mexican workers is very large, but it is also a seasonal job which sometimes will cause the migrant worker to move from the West Coast to Texas, or other agricultural states. This kind of migration is seen less and less since some states have been enforcing or enacting their own immigration laws which prevent most illegal immigrants from going and providing an economic impact to the region. Ask any struggling Mexican if U.S. plans for a high-tech border fence will stop the flow, and he will tell you the idea is fanciful, that you cannot deter the desperate. “If you build a wall, they will build taller ladders and dig deeper tunnels,” says Del Plan. “If the entire border becomes clogged with armed guards, they will take boats, as the Cubans and Haitians do.” Indeed, this shift is already happening (262). As you can see O’Donnell and Zaitchik agree that the agriculture businesses require the migrant workers, and that increased border security will not deter illegal
The Maquiladora program has also been an integral part in the rapid growth of the Mexico-U.S. border region. The U.S.-Mexico border separates four U.S. states (California, Arizona, New Mexico, Texas) and six Mexican states (Baja California, Sonora, Chihuahua, Coahuila, Nuevo Leon, and Tamaulipas). These are all called the twin cities, although the border politically separates them they share common air sheds and drainage basins. Seventy percent of all Maquiladoras are located in the border region of Mexico. “Over 1,600 Maquiladora plants in the border area employ over 510,000 workers, about half of which are located in the two biggest Mexican border cities of Tijuana and Ciudad Juarez”. There was a 13% growth in Maquiladora employment in the border region, within the interior of Mexico it was actually 28 %. At
GM needed to find a way to protect its long sustained success in the domestic market, and build as a global player, which had everything to do with its strategy in developing foreign markets. Given the volatility of the Mexican economy, GM needed to seek international markets
Employing Mexicans for such minimal wages implies a peculiar kind of a 20th century imperialism: GM is able to extract enormous profits and to become the world’s largest corporation by super-exploiting labor in a country less well developed and economically influenced by the USA.
Over the years there have been certain countries that are rising economically. They are taking the leadership role, and filling in gaps that are slacking from other countries, one of which is Mexico. They have been rising economically for decades now. They specialize and excel in the areas of importing, exporting, and trading. Recently they have been developing and exceling quickly. Mexico’s economy has developed rapidly causing them to move up on the charts with being one of the biggest importing and exporting countries in the world.