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MAQUILADORAS AND THE NAFTA'S IMPACT

In this paper I will discuss the history and practices of the Maquiladora industry. I will discuss its background, its problems, the benefits it offers to United States companies, and the impact the NAFTA has and will have on the industry. In addition, I will make a suggestion on a possible strategy the Maquiladoras can adopt in order to address the challenges brought on by the NAFTA, to ensure it remains a strong force in the future.

Mexican agricultural workers had been granted temporary work visas allowing them to work in the United States' agricultural industries through a program called the Bracero Program until 1965 when this program was terminated. As a result of this termination, the unemployment rate had exceeded 70% in certain border cities. In May of 1965 the Border Industrialization Program was established as a replacement for the Bracero program. It was later renamed the Maquiladora Program. The program was established by the Mexican government to provide employment for Mexico's rapidly growing population along its border with the United States. This program was utilized to keep Mexicans from entering the United States. The idea was that Mexican workers would be kept on the Mexica


One of the benefits of the Maquiladora program is 100% foreign investment of Mexican operations, which formerly was not allowed. However, Mexico's Foreign Investment Law has changed through the years (most significantly in 1989 and 1994)-full investment is now allowed in most business ventures.

Operation Without Ownership of Assets



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Approximate Word count = 2076
Approximate Pages = 8 (250 words per page double spaced)


  

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