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Essay / Research Paper Abstract
In four pages this paper examines the effects of the North American Free Trade Agreement upon the automobile plants the United States owns in Mexico, with the impact of globalization on plant workers a major focus. Eight sources are listed in the bibliography.
Page Count:
4 pages (~225 words per page)
File: TG15_TGnaftamex.rtf
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Unformatted sample text from the term paper:
p. 61). Depending on ones perspective, globalization can be "a wise plan for a new political order" or represent "a conspiracy of selfish interests" (Hochschild, 2006, p. 40).
Globalization has affected the way the United States and the rest of the world do business, and the North American Free Trade Agreement (NAFTA) was first passed in 1994 to
take full advantage of international market potential by strengthening trade relations between Canada, the United States, and Mexico. In their text entitled NAFTA Revisited: Achievements and Challenges, Hufbauer &
Schott (2005) observed, "Motor vehicles and parts account for a larger share of intraregional trade in North America than any product sector" (p. 365). It therefore comes as no
surprise that NAFTA would have the greatest impact upon the automobile industry, particularly in Mexico, where U.S. automakers took advantage of the economic advantages associated with opening plants south of
the border. This restructuring and the relocation of several Detroit automobile plant operations (including General Motors) to Mexico allowed manufacturers to escape traditional barriers to trade including tariffs (NAFTA
and Acme Motors, 2006). However, the profitability NAFTA represented to these plants and their investors came at a considerable price with the loss of many American jobs and the
exploitation of inadequately paid Mexican autoworkers. When such workers were questioned regarding what, if any, threats globalization and NAFTA posed to them, an overwhelming majority responded they most
feared either losing their job altogether or having to struggle financial by accepting a lower-paying one (The Internationalization of Employment: a Challenge to Fair Globalization?, 2006, p. 119). These
fears have proven to be well founded. While NAFTA promised the creation of more American jobs at better pay for the U.S. automobile industry in Mexico for those workers
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