Nafta's Failure at Globalization

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ABSTRACT The North American Free Trade Agreement (NAFTA) currently includes approximately four hundred and forty million people. It is one of the world’s largest free trade zones that include US, Canada and Mexico. In this research, Mexico has been taken as the case study. This research paper is all about the economic and social effects of NAFTA to the people of Mexico. It tries to analyze at length, and answers the question “Has NAFTA allowed for the people of Mexico to be subjected to dehumanizing work for miserably low wages by the maquiladoras since its beginning?” The secondary information cited in this work covers the time of formation of NAFTA to date. After going through this work, one can realize beyond any reasonable doubt that NAFTA has caused more harm than good to the people of Mexico. INTRODUCTION NAFTA, as a free trade agreement, had no protections to maintain both environmental standards and labour standards (Robinson 1991). It encouraged direct foreign investment and allowed for movement of factories and machinery within its borders. This resulted in an economic favour to the investors while the environment and the workers had the disadvantage. The economic imbalance has since then been propagated. The end result is income inequality as majority of the workers have lost their jobs; the real wages of the production workers have been suppressed; the collective bargaining power of workers, and their ability to form unions, have been thwarted. The industrialization is Mexico can be said to be medium scaled (semi-industrialized), with resources that include several metals and petroleum. The goods from the industrial sector are machinery, steel, petrochemicals, and a large variety of consumer products. Integrating the Mexico’s economy into the competitive global economy led to the signing of NAFTA which became effective in 1994, which aimed at free

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