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.