The Mexican Economy and Maquiladoras
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This paper analyzes the Mexican economy in detail, in particular highlighting the manufacturers known as maquiladoras in the city of Juarez. The paper finds that the Mexican economy is highly dependent on trade with the US which absorbs 80% of Mexico's exports, and these exports are concentrated among the maquiladoras that operate on the northern border. The paper discusses how in order to improve the conditions of maquiladora workers and address the problems of crime and drug violence, workers must earn better wages, and the Mexican economy must be diversified to relieve the pressure on the maquiladora sector. The paper concludes, however, that the Mexican economy is becoming more dependent on exports to the US and this will continue to leave Mexican workers living in poverty and vulnerable to crime.
The Mexican Economy
The Mexican Economy
From the Paper:"The Mexican economy grew 5% in 2010, but remains below its level in 2008. The economy suffered a 6.5% decline in 2009, highlighted by declines in trade with major partners such as the United States. The Mexican economy is roughly balanced between exports and imports, with a trade deficit of just $3 billion in 2010. The majority of Mexico's exports go to the United States (80.5%), with Canada a distant second. These exports include both manufactured goods and oil products, with agricultural goods a distant third (illegal drugs not included). The country is largely dependent on imports for major industrial goods and machinery. Thus, it is reasonable to assert that Mexico's economy is highly dependent on its ability to export to the US. When the American economy struggled in 2009, Mexico's economy struggled to an even greater degree, as Mexico's consumers and government were either unable or unwilling to spur the economy forward.
"Mexico's economy has become more trade-oriented since it entered into NAFTA. That agreement lowered trade barriers with the United States and Canada, and lowered investment barriers for northern firms wishing to set up production in Mexico. Northern production in Mexico is focused on the border region with the United States, with which it generally has good transportation links."
Sample of Sources Used:
- CIA World Factbook: Mexico. (2011). Retrieved April 12, 2011 from https://www.cia.gov/library/publications/the-world-factbook/geos/mx.html
- Federal Reserve Bank of Dallas. (2001). Economic update on El Paso del Norte. El Paso Business Frontier. In possession of the author.
- Higgins, T. (2009). Juarez trade officers fear economy. Detroit Free Press. Retrieved April 12, 2011 from http://www.freep.com/article/20090419/BUSINESS01/904190493/Juarez-trade-officers-fear-economy
- Llana, S. (2010). Mexico killings: How the drug war crippled the Juarez economy. Christian Science Monitor. Retrieved April 12, 2011 from http://www.csmonitor.com/World/Americas/2010/0315/Mexico-killings-How-the-drug-war-crippled-the-Juarez-economy
- Rosenburg, M. (2010). Maquiladoras in Mexico. About.com. Retrieved April 12, 2011 from http://geography.about.com/od/urbaneconomicgeography/a/maquiladoras.htm
Cite this Analytical Essay:
The Mexican Economy and Maquiladoras (2013, May 27) Retrieved September 23, 2019, from https://www.academon.com/analytical-essay/the-mexican-economy-and-maquiladoras-153381/
"The Mexican Economy and Maquiladoras" 27 May 2013. Web. 23 September. 2019. <https://www.academon.com/analytical-essay/the-mexican-economy-and-maquiladoras-153381/>