Maquiladoras & NAFTA Essay -- essays research papers

MAQUILADORAS AND THE NAFTAS IMPACTIntroduction In this paper I pass on discuss the history and practices of the Maquiladora industry. I impart discuss its background, its problems, the benefits it offers to fall in States companies, and the impact the NAFTA has and willing have on the industry. In addition, I will perk up a suggestion on a possible strategy the Maquiladoras raise adopt in order to address the challenges brought on by the NAFTA, to go over it remains a strong force in the future. Background Mexican agricultural workers had been granted temporary work visas allowing them to work in the joined States agricultural industries through a program called the Bracero Program until 1965 when this program was terminated. As a result of this termination, the unemployment rate had exceeded 70% in certain brink cities. In May of 1965 the Border Industrialization Program was established as a replacement for the Bracero program. It was later renamed the Maquiladora Program. The program was established by the Mexican government to provide employment for Mexicos rapidly growing population along its palisade with the United States. This Program was utilized to keep Mexicans from entering the United States. The idea was that Mexican workers would be kept on the Mexican boldness of the border if they were given factory jobs on the Mexican side. The Maquiladora program in addition wanted to attract foreign manufacturing facilities, technology, and know-how by giving a ageless tax holiday to manufacturing companies that would set up "twin plants" on the Mexican side of the border. In the beginning of the program, all foreign-owned operations had to be fixed within a 20-kilometer strip along the US-Mexican border. Since 1972 they can be rigid anywhere in Mexico. In 1996 there were around 2,500 Maquiladoras - 35% of them were set(p) in the interior states of Mexico. Last year there were over 3,000 and more than and more of these operations are b eing located outside of the border regions. Each of Mexicos 31 states has at least one Maquiladora. What is a Maquiladora? Maquiladoras, in addition referred to as "in bond" or "twin" plants, are allowed to temporarily import into Mexico (free of tax) machinery, equipment, replacement parts, raw materials, and just about anything that was used in the assembly or manufacture of semi-finished or finished products... ...on between the non-Maquiladora and Maquiladora industries I feel the inefficient producers will be wiped out. Therefor, Maquiladora employees will look at rectify training, education, incentives as well improved working conditions and higher wages. Operations will also have to be streamlined in order to tie the benefits of economies of scale and scope. In addition, Mexicans as well as US citizens will undertake to demand more accountability from the Mexican government and the Maquiladora industry. They need to be more responsible for their actions. What will the U.S. corporations do when human rights activists and environmentalists start lobbying and protesting on their US sites? Do they want to risk losing their shareholders to this type of forbid attention? References Benitez, Gerardo, Latin American Perspectives The Maquiladora Program Its Challenges Ahead, THE WHARTON JOURNAL, December 11, 1995. Clifford, Frank and bloody shame Beth Sheridan, Borderline Efforts on Pollution, THE LOS ANGELES TIMES, June 30, 1997, 1. Naumann, Ann K. and Mireille Hutchinson, The Integration of Women into the Mexican Labor Force Since NAFTA THE American BEHAVIORAL SCIENTIST, June/July 1997, 950-956.