Pros And Cons Of Maquiladoras

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

* Labor outsourcing is a good strategy to decrease the labor cost. But it associates with many issues. Once outsourcing is done, the MNC cannot just stay behind. The MNC should carefully supervise on the working conditions, safety, wages, working hours, gender discrimination and human rights violations. If any of these factors going wrong and leads to sweatshop conditions, it directly affect on the reputation of the MNC. If once the name or the brand is blacklisted, it is very hard to repair the damage. Therefore, the risk of outsourcing is high.

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.

The former includes garments and textiles, footwear, electronics and various other sectors that require a large labour force to produce its goods or services, whereas the latter, includes—but not limited to— the production of chemicals, petroleum and automobiles. Among the many industries mentioned above, garment and textile and the automotive industries predominate in the maquiladoras. In fact, Wilson (1995) states that the automobile industry in its search for cheaper labor in the wake of increasing competition from the Asia market led U.S. companies like Ford, Chrysler and General Motors to significantly increase their investments in the maquiladoras in the 1980s (Wilson, 1995, p. 142). In regards to the garments and textiles, Billes (2003) argues that the movement from the border regions the interior parts was most apparent for firms that produced garments and textiles. Moreover, the search for cheaper labor as wages in the urban and northern border regions were rising led firm to migrate to poorer states like Yucatan (Billes, 2003, p.

I feel the article explores the political conflicts that arise when aspirations collide across a generational divide marked by sharply different political agendas. The character Tricia is a young, single mother whose family and financial difficulties reflect the circumstances of the urban poor. Furthermore, she delivers a compelling performance in scenes that reflect just how city policies affect individuals.

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.

many of the women see themselves as objects of labor. For example in the documentary

These people are so poor that they can’t afford to stay in one place and work. They don’t have any form of a permanent residence. These people are often extremely hard for interviewers to find in order to spread awareness because they move so frequently. They make little to no money working and their jobs are often taken or sent off to other countries which is why they are forced to move so often to that they can find new jobs. Ehrenreich managed to track and find a couple of people that worked low paying jobs and for a time they couldn’t afford to settle down. “This spring, I managed to track down a couple of people I had met while working on my 2001 book, “Nickel and Dimed,” in which I worked in low-wage jobs. I woman I called Melissa in the book was still working at Wal-Mart, though in nine years, her wages had risen to $10 an hour from $7” (322). Hard working people work for wages that barely allow them to provide for themselves. They might get a raise but that’s only after they have been working the same job for several years and the raise isn’t even by much. They are forced to work for low pay in an attempt to stay

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 Maquiladora Assembly Facility – This facility is used to assemble imported U.S.-manufactured components into final products for sale mainly in the U.S. Seeing as the majority of sales occur in the U.S., this facility generates its revenues in USD.

corporations to use cheap overseas labor” my first thoughts were yes because of my personal beliefs. But upon further thought and through discovery, I realized that from a business point of view we as a nation should still help promote economic globalization. In order to do so we need to outsource production and encourage trade. However, because we are fiscally involved in another country’s economy that doesn’t give American corporations the right to implement our laws and standards into other countries’ business practices and laws. Just because we see child labor, unfair wages, and violating overtime as immoral, doesn’t mean that the host county does. However global labor standards need to be unified.

•P5- Reich gave an example of maquiladora factories owned by American but have foreign cheaper producers.

The American Outsourcing Case is a compilation of factual information for the purpose of provoking debates. The authors present both the pros and cons of outsourcing, and avoid inserting their personal bias. The case clearly defines outsourcing and then focuses on outlining its existence in China, Mexico, and India. The evolution and U.S. involvement in the Maquiladoras of Mexico is described first. The implementation of NAFTA and the creation of Maquiladoras were major catalysts in the growth of free trade between the U.S. and Mexico. China, in an attempt to attract foreign investors, created Special Economic Areas, which designated geographic zones that were enabled to operate under their own laws. With great tax benefits

Companies such as Apple, Dell, HP, IBM, and Sony outsource labor and hardware manufacturing to a company called Foxconn Technology Group. Foxconn Technology Group is a multinational business anchored in Shenzhen, China. Some of the typical hardware being manufactured are, motherboards, chipsets, smartphones, tablets, and laptops. The majority of the factories are in China, three in Europe, one in India, and four in Mexico. Currently there are contracts to expand and build a new factory in Brazil. I believe that there are many ethical problems related to this example; first, the general idea of outsourcing mass amounts of labor, and secondly the mistreatment of

“Is labor outsourcing to developing countries a legitimate business strategy that can be handled without risk of running into a sweatshop scandal?” outsourcing of production facilities and