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A Case Study of free trade economics in Mexico

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Introduction

Mexico - Free Trade Zones Economic A Case Study of * A developing trade zone * Foreign investment * Economic investment in a foreign country * Exploitation of an economic country Why are companies investing in the free trade zone? * A large cheap and well educated workforce * Low cost materials * Low wages * Low living cost * Free trade to millions ...read more.

Middle

Advantages of Maquiladoras * 30,000 jobs have been created * Technology and training are introduced and workers gain new skills * Large well known companies attract other companies to the zone creating employment * Quotas in the free trade zone help create other jobs at an earlier stage of production * Foreign companies can have positive multiplier effects which have benefit other industries Disadvantages of ...read more.

Conclusion

The companies do not contribute to the local community because they do not pay any taxes * Money used to attract Maquiladoras could have been spent on improving local services and amenities * Wages in the free trade zone are ten percent of the US wages, if wages in Mexico, in the free trade zone, were increased, companies would move other parts of the world ...read more.

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