Maquiladoras Research Paper

1. Do you think the expansion of maquiladoras has been more of a benefit or a harm to Mexico? Why?

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.

Along with the money that it brings the Maquiladoras, it saves the capitalists money on labor costs and import and export taxes. The capitalists save money because they are getting labor for $16.00 a day per worker. They would not be able to do that with American laborers.

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

Set on Tenerife’s southwest coast, Playa de las Americas is a lively resort area with an active nightlife. The year-round sunny weather and beautiful sandy beaches bring a predominantly British crowd looking to escape the often cold and dreary weather of home. Duty-free shops, great restaurants and the largest water park in Europe are just some of what Playa de las Americas has to offer. Thousands of revelers come from all over Europe to live it up in rowdy Verónicas, a 1km stretch of nightclubs, cabaret bars, live music venues, shops and restaurants. The party keeps going 24 hours a day with neon lights, loud music pumping from doorways and people dancing in the streets, making Verónicas a hot destination for young hedonists. Those seeking

In Mexico, the maquiladoras are a great and beneficial source for the economy, rising up their earnings and wasting little money on their employees. Maquiladoras are own by large corporations, which they only seek for more earnings by establishing these maquiladoras in profitable locations. These corporations know exactly where to locate their maquiladoras, within near poor communities, where families are in need of jobs to put food on the table. The majority of the maquiladoras mainly hire women that are willing to work under harsh conditions. These women obtain unfair treatment and low quality of work conditions, and the reason some of these women continue to work for the maquiladoras is because they need the job to support their families. Also, maquiladoras are known for paying slightly higher wages than common jobs in which women had worked before. Though, these conditions for working in maquiladoras does violates these women’s human rights and the mistreatment they received from working long tough hours can cause serious problems to their health. The maquiladoras in Mexico are always looking for cheap labor in order to “pay less and make more”, creating a social injustice on women working for maquiladoras. Numerous women working for maquiladoras are view as objects of labor and nothing more, these corporations take advantage by putting the women’s body under extreme corrupt working conditions. Maquiladoras owned by these large corporations that are from countries in

An abundance of natural resources and cheap labor would seemingly make Mexico a greater option for many companies looking to establish a competitive advantage (in terms of cost/labor) over its rivals. While great similarities with Canada exist, especially in language, also making it a great option for many U.S. companies looking to establish a bigger global presence and increasing their customer base, the angle of this paper is look at Mexico because of the cost cutting and profitability angles that it presents. It is important to note that although the official language of Mexico is Spanish, it should not discourage U.S. companies to do business in Mexico because Spanish is the second most used language in the United

Even though the impact of NAFTA has fundamentally changed Mexico in many ways; now, people have access to electronic appliances, expensive clothes and luxury cars, the treaty never met it promises. For example, the migration from Mexico to the United States, did not stop as president Bill Clinton argued. According to the article, “A fair farm bill”, the president of the time, Bill Clinton argued that NAFTA would eliminate the necessary large-scale of migration from Mexico because of the creation jobs and other redundant projects. However, that was not the case due to the fact that in between 2002 and 2005, Mexico defeated countries such India, the Philippines and Turkey in the role of global migration (Institute). Furthermore, the Institute for Agriculture and Trade Policy states on the article “A fair Farm Bill” that during the period of 2002 and 2005, “… the number of unauthorized immigrants from Mexico increased by 1.5 million to 6.2 million, with a calculation of 500,000 undocumented Mexicans entering the United States per year.” The provided data proves that NAFTA

Mexico began their journey to a more open economy with foreign trade and investment in the 1980’s by unilaterally lowering barriers on imports and elimination restrictions on multi-national firms. With the North American Free Trade Agreement (NAFTA) Mexico signed with United States of America and Canada in 1994, the free trade reforms of this country were solidified. Under NAFTA, Mexican tariffs on U.S. goods declined from an average of 14% in 1990 to 1% in 2001. Even though the peso crashed in late 1994, one manufacturing operation has proven to be highly successful. Maquiladoras are assembly plants that take in imported components to produce goods for export and they are the most dynamic exporters in Mexico. Hecksher-Ohlin Theorem suggests that a country will export goods that use its abundant factors intensively. The most prevalent industries maquiladoras have are apparel, electronics and auto parts. The intensive factor used in maquiladora plants is labor, which Mexico is abundant in. How it works for instance is: Mexico imports the primary sources of inputs to be assembled from United States and then exports back to them. The growth of maquiladora industry accelerated during the 1990s.

In the mid 1960’s the National Border Industrialization program began, helping the maquiladoras industry and the development of infrastructure of its northern border. Creating job opportunities and means of products into the country. According to Mexico Maquiladoras and NAFTA, Patrick Kelly describes that the maquiladora program “allowed foreign manufacturers to temporarily import duty free machinery, tools, equipment, replacement parts and raw of plentiful and comparatively cheap labor and low transportation costs, materials necessary to assemble and manufacture for export outside the country, which had become an advantage for U.S manufacturers. When the maquiladora industry first began they did not want foreign equipment or raw material to be sold in Mexico without being subject to duty. The Mexican government had its own regulations, within those regulations the maquilas were not allowed to sell completed products in Mexican markets with the risk of losing their registration and continuance of importing goods free of duty. This regulation began to lose its standards in the 1970s. According to Hanson, once the rules weren’t practiced like before its import changed and allowed the use of maquiladoras as part of its Border Industrialization Program. Hanson claims that “the program permitted firms to import free of duty the inputs, machinery, and parts they would need for export assembly operations”. Maquiladoras or factories as they are known today, were required to

In recent times it has become more and more apparent that the world has gotten much smaller due to globalization. There has also been an associated shift in where products for sale in retail stores around the world, the West in particular, are made. Indeed, many of the items that were previously made in the United States are now made in Latin America and Asia with Mexico in particular being one of the ubiquitous countries that are involved. When it comes to globalization, many are quick to point out the positive outcomes and attributes that are developing, however, neither the prevailing opinion about the subject nor the ostensible effects of globalization are monolithic. Indeed, there is evidence and scholarly opinion

Following the passage of the North American Free Trade Agreement(NAFTA), many United States based industries and corporations began investing in plant operations in Mexico due to the cost cutting efficiencies that Mexican labor offered. Due to a low cost of production this spurred the growth of Mexican-manufactured goods which were exported and purchased mainly by American consumers. For many of these businesses it was their first time opening operations in the Central American country, and American businesses shared concerns over regulatory differences in U.S. and Mexican labor laws. The scope of this paper is to examine some of the similarities and differences

Additionally, it has become apparent that as years continue to go by the workers are being overworked in unsafe conditions with low wages. Even though President Salinas believed that it is better to export goods such as tomatoes then his workers the government choose to ignore the repercussions Mexican workers would have to face when working for these companies. The most attractive reason for companies such as General Motors would leave for Mexico is because of how much cheaper it will be to produce the same product in a developing country. Even if US companies are moving to other developing countries people blame Mexico because of how near it is to the US. One thing people overlook when speaking about the topic is the unfair and unjust wages they any these workers. These companies, in order to maximize profit, put many Mexican lives at risk. Even if the US has strict labor laws Mexico doesn’t which is a big problem since the people are the ones effected by the tough ways in which Mexicans are treated. In the article “Under NAFTA, Mexico Suffered, and United States Felt Its Pain” author Laura Carlsen speaks about the economic

Multinational corporations are harmful because they have bad working conditions. According to Sweatshop Fact sheet, workers who work for J.C Penny are beaten and eat the bad food in America Samoa. It¡¯s important because workers should not get beaten for work. It harms workers babies and workers don¡¯t get expectation. Even the police cannot

NAFTA permitió además aumentar la producción de vacunas en México para satisfacer la creciente demanda de los EE.UU., mientras que la competencia de los importadores no llego a materializarse. En general tuvo un efecto positivo.