HIST 2055 Chapter : NAFTA
Document Summary
Supranational agreement signed in order to reduce most barriers to trade and investment between the us, canada, and mexico. Keep money and resources in region foster economic self sufficiency. North american free trade agreement: nafta some pros & cons, pros: Provides great market for exporters in all 3 countries (maquiladoras /u. s. Increase in exports has led to gdp growth in all three countries. Hq in one country, international business in an array of global subsidiaries: cons: Social unrest in all three countries (ezln, immigration, political unrest) Maquiladoras: foreign-owned plants, hire people at low wages to assemble manufactured goods, workers: mostly young, unmarried women earning /day. Increase in men, agricultural work diminishes: mexico: far fewer regulations: worker safety, environ. protection, fringe benefits. Foreign firms/environmental regulations: between 1994-2000: 3 of every 10 new jobs, today: 4,000+ maq"s, 1. 3 mil. employed. Gnp growth linked to maquiladoras and nafta (as much as 7% a year) Environmental: illegal dumping of toxic waste, overload of infrastructure.
