Globalization in Mexico

Globalization in Mexico

1. NAFTA

   • North American Free Trade: In the 1980’s and 1990’s, Mexico loosened its trade restrictions, greatly reduced tariffs, and signed the North American Free Trade Agreement (NAFTA) with the United States and Canada

2. Economic growth as a result of globalization in Mexico has certainly benefited Mexican business and industry.

3. According to a report by the National Bureau of Economic Research (NBER), Mexican states that have had “high exposure” to globalization

4. Mexico is recognized as a country that opened its doors to the globalization

5. The resulting rapid growth of the manufacturing industry has forced many of the small and mid-sized companies into bankruptcy. Many manufactures are attracted to Mexico because of its proximity to the US , cheap labor and relaxed rules for foreign investment. Numerous landowners in the northern region have grown financially by selling their land to the developers of foreign-owned factories. Due to this large-scale sale of agricultural land, agricultural production in Mexico has dropped considerably. This has led to an increase in poverty particularly in the rural regions.

6. Culturally, due to media saturation via internet and television, the marketing of products and entertainment has also resulted in a revaluation of Mexican traditions. Many unique characteristics of Mexican culture are being lost due to this type of exploitation.