A Case Study of free trade economics in Mexico

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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 of people
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Maquiladoras

Foreign national companies, called maquiladoras, set up in Mexico, often in free trade zones because they offer financial and other advantages.

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 Maquiladoras

  • In some parts of the free trade zone, strikes and ...

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