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In: Economics

Explain the relationship between Mexican workers and U.S. corporations and assess how this relationship contributes to...

Explain the relationship between Mexican workers and U.S. corporations and assess how this relationship contributes to the alienation and solidarity of U.S. and Mexican workers. 300 words

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ANSWER :

Since 1980 US corporations have been setting up in mexico . it has been made easier by the government by imposing free movement of capital across countries and liberalising domestic market .

  • US corporations are setting up in mexico due to cheaper availability of labor .
  • IT has encouraged corporation to shift business from US to mexico to take cost advantage . these corporation has no motive of developing mexico .
  • IT has been focused on extracting cheaper labor .in mexico there is no legal regulation on these corporation which gives them further advantage over labor .
  • labor in mexico are exploited due to lower wage rate and absence of regulation .
  • On the other hand US worker suffer as well . They has lost employment opportunities .corporation are concentrated in mexico reducing employment in US .
  • IT has led to tentions and frictions between them . Harmonious development has been hampered .
  • IT has helped neither countries workers as it has reduced job creation in US and mexico comparative advantage has been restricted to labor intensive products only.balance growth has been hampered.  

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