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Essay / Research Paper Abstract
This 10-page paper argues the benefits of U.S. companies placing factories overseas. Bibliography lists 6 sources.
Page Count:
10 pages (~225 words per page)
File: AS43_MTusfactov.doc
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Unformatted sample text from the term paper:
They were convinced the agreement meant that U.S. companies were going to shift all operations to Mexico or Canada, which would leave huge numbers of jobless individuals in its wake
and the specter of boarded-up factories and plants. More than 15 years after NAFTAs passage, the jury is still out on whether its been effective or not. But one thing
we know for certain - NAFTA didnt see U.S. companies abandoning the United States - nor did it leave behind scads upon scads of unemployed people (there are many unemployed
these days, but that has little to do with NAFTA). What NAFTA did end up doing, however, was provide tacit encouragement for U.S.
firms to find the most cost-effective way of doing business. For example, building a maquiladora just south of the border, in Mexico, meant certain costs could be saved, while there
was greater access to resources that might not be readily available in the United States. Nor is Mexico the only destination point for
U.S. companies and its factories. Since the mid-20th century, U.S. companies have moved plants overseas to increase economies of scale, while lowering costs. Certainly such moves did mean a short-term
loss in jobs. But overall, it has better benefitted the economy, not to mention corporate shareholders. Its likely that, without moving factories overseas, some of these companies might have had
to cut back on jobs in the United States as profits eroded - or might have had to close down altogether. In
short, encouraging U.S. companies to move factories and plants overseas ultimately helps grow profits for the companies, while providing more jobs to employees back home and positive benefits for other
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