The Impact Of Maquiladoras On The World 's Biggest Trade Zones Right

The end result is that consumers pay more for the goods. With history we have seen many I don't like the idea of jobs that leave our country, as I have lost a job before, because the medical tubing machine could be ran cheaper in Mexico, where me and several co-workers (4) who ran it safely here, the company we worked for leased the machine for 2 workers to run not so safely as we did it here in the states, with all the rules we have to follow for safety. Without the tariffs we would continue to lose jobs to other countries with cheaper labor cost. It is believed that it will continue to add to the unemployment rate and increase the money lost from the U.S. economy and not coming back. Tariffs have proven that they can keep the jobs in the U.S. and the money will stay too, which will be spent on in stores, in local restaurants, housing, entertainment, groceries and other stuff. In the past and at times some still think of tariffs as a bad word. Yes things here in America are better by far taxes, the poor, (not so poor) middle class and all, than most other countries

Increased revenues are one main lucrative advantage any source country getting lot of illegal immigrants would like to help off.

For instance, negotiators are working to set up rules on intellectual property rights, government procurement and the role of the state in private enterprise.” (LA times) The agreement spans more than 10 countries including the United States, Australia, Brunei, Chile, Malaysia, New Zealand, Canada, Peru, Singapore, Vietnam, Japan, Korea, and of course Mexico. The combined value of these countries represents almost 25 percent of the world’s trade and 45 percent of the world’s GDP (DePilis). Mexico has a lot to benefit by joining such a large free-trade pact and it isn‘t just the economic gains a US$180 billion TPP market.”(east asia). The benefits will not only be in monetary value but also in exposure to new markets all around the globe, which lead to benefits in many different areas “It will allow them be present in the Asia-Pacific region with preferential access to a market representing a potential market of 198 million consumers, without including NAFTA countries. It is an agreement that not only opens markets for them, but also will create long-term synergies and additional benefits such as taking advantage of the economic cycles of Australia, Singapore, Malaysia and Vietnam which are in turn related with the economies of China and India. There are studies that predict that the economic benefits of this integration could be reflected by

Each day there are over a billion dollars of commercial traffic crossing. 70% this is via trucks. Furthermore, after the introduction of NAFTA in 1994, trade has more than quintupled, with goods and services totaling close to half a trillion dollars annually. It has been estimated that six million US jobs and Mexican and Mexican jobs have been created as a result of this bilateral trade. However, besides the quantity of trade, the quality is unique. The US and Mexico engage is what is referred to as production sharing. This is when “materials and parts often cross back and forth between factories on each side of the border as a final product is made and assembled” (Lee et al, 5). Such a system has two important attributes. The first is that both countries tend to experience economic growth and recession together while the second deals with border crossing. That is, depending on border efficiency, goods create a multiplier gains and losses effect. Without question, the long waiting times come at a high cost for both countries. We now focus on our attention to the proposed

Apart from Canada and China, Mexico is the third-largest exporter of goods to America; while America is in the process of imposing 20-25 percent tariff upon the goods imported from Mexico, specifically the automobiles. There are a number of analysts which state that this decision will not only increase the car prices, but also the auto-makers might lose their customers, or they need to move their production plants in the United States, as stated by the President Donald Trump, in order to get themselves exempted from the high percentage of tariffs. Moreover, Mexico is offering cheap labor along with free-trade deals with some markets as the free trade agreements of the country covers around 45 countries which attracts the automakers towards the very country (Tribune News Services, 2017)

Free-Trade Agreements are entered into by parties expecting to mutually benefit from the terms of the agreement. Over the course of the past three decades the United States has entered into numerous Free-Trade agreements, most notably with nations throughout the Latin American region. Latin American countries are geographically and economically similar to the U.S., which makes them valuable partners in furthering America’s global initiatives. The United States has seen considerable economic returns since the advent of these free-trade agreements; however, there is a sense of uncertainty when the analysts examine the effects of FTAs on Latin American nations.

In Mexico they are called Maquiladoras, factories that were establish after North American Free Trade Agreement. Those factories produce parts and products for American, Japanese and some European factories. They employ over one million workers in 3000 factories and under American standards those factories would be considered sweatshops. The workers are paid as little as $10 per day, they usually work long hours and working conditions are poor. The workers live in shacks without running water and where usually pollution is very high from the factories. The argument from NAFTA is that they provided jobs for many unemployed people and that poverty was there before those factories arrived.

Identify gaps or overlaps in the market coverage of your existing store network, and make corrections by opening, closing or moving stores

When we look at the goods exported from the U.S. to Mexico, we must understand that the figures used do not mean goods to be sold in Mexico. Most of the figures released by the government include what is termed as ?industrial tourism?. This means we send goods to Mexico to be assembled in their low wage plants and then re-imported into the U.S. as finished products. (2)

sector – banking and insurance. It leads to emerging new issues such as Trade Related

Many believes that this is a good thing, because living standards around the world will rise, and workers in developing nations will get new and higher-paying jobs, and consumers in the U.S. will be able to buy products that are cheaper than if they were made at home.

In 1994, the leaders of the thirty-four democratic countries of the Western Hemisphere launched the process of creating a Free Trade Area of the Americas (FTAA). The FTAA will be established by 2010 with the aim of gradually eradicating barriers to trade and investment in the region. The final characteristics of the FTAA will be determined through negotiations by government officials from the thirty-four participating countries. The trade issues that are presently under discussion are: market access; investment; services; government procurement; dispute settlement; agriculture; intellectual property; antidumping, subsidies and countervailing duties; and competition policy. Guiding principles for these negotiations

The North American Free Trade Agreement is a mind blowing point of reference in overall trade for the United States, Mexico and Canada. It has changed trade among three countries and had a general beneficial outcome on every country's economies. NAFTA especially influenced the green zones of each country. Regardless of the way that there have been a couple of trade inquiries and issues, the plant economies of each country benefitted.

Talking further about benefits on imports due to international trade agreements, U.S. Chamber of commerce`s statement from Peterson Institute for International Economics studies suggest that the trade agreements has saved of $10,000 by each household. This is a boon to low income American families as they struggle to stretch their budgets. Another study as mentioned by U.S. Chamber of commerce suggests that “one-quarter of U.S. imports from Canada consist of value added from the United States itself, and a huge 40% of U.S. final good imports from Mexico consist of its own [U.S.] value added.” As Mexican officials have pointed out, “For every dollar that Mexico earns from exports, 50 cents are spent on American goods”. Even though most of the apparel and footwear is imported into U.S, it is worth note that those are innovated, designed and retailed in the U.S itself. These initiatives gave jobs to almost four million Americans. (U.S. Chamber of Commerce, 2015, p5)

Foreign Trade Zones (FTZs) were established by the United States under the Foreign-Trade Zones Act of 1934 and are controlled by FTZ and CBP (Customs and Border Protection) Regulations (U.S. Customs and Border Protection, 2015). FTZs are authorized geographical locations that allow commercial merchandise including both foreign and domestic to be subject to laws as if it were outside the boundaries of U.S. Customs (Hawaii Foreign-Trade Zone No. 9, 2015). Manufacturers, importers, and exporters can hold goods within the zone and also conduct operations. One notable requirement is that FTZs must be near a port of entry. Although the merchandise is on U.S. soil, the products are not subject to U.S. duties, tariffs, and value-added taxes. Normal protocol is for inventory to pass through customs at which payment is due at the time of inspection. As long as the products are within the boundaries of the law, they are not subject to payment during their time in the FTZ.