Mexico is a prime example when discussing the positives and negative effects of globalization. Since the early 1980's, Mexico has loosened trade barriers and restrictions on investments. They practically eliminated tariffs, making trade a vital part of their economy. In addition, in 1994, they signed NAFTA (North American Free Trade Agreement) which helped Mexico's GDP to triple from 1980 to 1992. Clearly, international trade is a major part of the growing Mexican economy, but the effects of globalization in Mexico do not have a positive impact on all citizins.
Since the increase in globalization began in the 1980's, different areas of Mexico have had various levels of exposure. Northern Mexico has seen the positives of globalization. For example, in the mid-1990's during the peso crisis, incomes northern Mexico suffered much less than incomes in southern Mexico. This was because of the location of Mexico to the United States. Northern Mexico was able to trade across the border of the US. Unfortunately, labor earnings in southern Mexico have decreased by over 10% since the 1990's. In addition, the number of workers who can support their families in southern Mexico and stay out of poverty is still decreasing. Clearly Mexico is seeing all different effects of Globalization.
Another negative effect of globalization is drug trafficing. In September of 2007, Zhenli Ye Gon was arrested in the United States following the discovery of over 205 million dollars earned from selling cocaine and meth to people in the United States and other countries. Over the past few years the number of large scale drug trafficers from Mexico is increasing and it is changing the US market for illegal substances. The increasing demand for meth would not be occuring if people such as Ye Gon did not supply illegal substances at such a large scale.
While there are many positive effects of globalization, there are many negative effects as well. Globalization does not effect everyone positively, and a globalized world can result in negative trade. Hopefully in the future Mexico will work out their trade faults.
Works Cited
"Globalization and Poverty in Mexico." National Bureau of Economic Research. 24 Sep. 2008 http://www.nber.org/digest/apr05/w11027.html.
Porter, Eduardo. "The China Connection: Globalization and the Narcotics Trade - New York Times." The New York Times - Breaking News, World News & Multimedia. 24 Sep. 2008 http://www.nytimes.com/2007/08/02/opinion/02thu4.html.
Since the increase in globalization began in the 1980's, different areas of Mexico have had various levels of exposure. Northern Mexico has seen the positives of globalization. For example, in the mid-1990's during the peso crisis, incomes northern Mexico suffered much less than incomes in southern Mexico. This was because of the location of Mexico to the United States. Northern Mexico was able to trade across the border of the US. Unfortunately, labor earnings in southern Mexico have decreased by over 10% since the 1990's. In addition, the number of workers who can support their families in southern Mexico and stay out of poverty is still decreasing. Clearly Mexico is seeing all different effects of Globalization.
Another negative effect of globalization is drug trafficing. In September of 2007, Zhenli Ye Gon was arrested in the United States following the discovery of over 205 million dollars earned from selling cocaine and meth to people in the United States and other countries. Over the past few years the number of large scale drug trafficers from Mexico is increasing and it is changing the US market for illegal substances. The increasing demand for meth would not be occuring if people such as Ye Gon did not supply illegal substances at such a large scale.
While there are many positive effects of globalization, there are many negative effects as well. Globalization does not effect everyone positively, and a globalized world can result in negative trade. Hopefully in the future Mexico will work out their trade faults.
Works Cited
"Globalization and Poverty in Mexico." National Bureau of Economic Research. 24 Sep. 2008 http://www.nber.org/digest/apr05/w11027.html.
Porter, Eduardo. "The China Connection: Globalization and the Narcotics Trade - New York Times." The New York Times - Breaking News, World News & Multimedia. 24 Sep. 2008 http://www.nytimes.com/2007/08/02/opinion/02thu4.html.
Video on NAFTA Free Trade Agreement:
Image: A poverty stricken area in southern Mexico.
Posted 9/24/08
1 comment:
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