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MULTINATIONAL CAPITAL AND FREE TRADE ZONES.
  Term Paper ID:29126
Essay Subject:
The internationalism of capital.... More...
10 Pages / 2250 Words
14 sources, 33 Citations, APA Format
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Paper Abstract:
The internationalism of capital. Creation of an economic system in which free trade zones exploit and oppress workers. Dominance of free trade zones by international capital rather than by domestic capital and the State. Declining local employment opportunities. Maquiladora Program (factories), Mexico and NAFTA. Globalization benefiting the elite, not the workers.

Paper Introduction:
Multinational Capital and Free Trade Zones A new hegemonic regime brought about by the internationalization of capital has created an economic situation in which free trade zones are becoming the locus of exploitation and the oppression of workers (Cravey, 1998). The emerging regime is characterized by the dominance of international capital over domestic capital and the state. The new export-led factory regime created by free trade zoning is a regime in which manufacturing and production jobs have exited the First World and then relocated in either the Second or Third Worlds where labor is cheap and human capital plentiful (Kopinak, 1996). Free trade zones, created by treaties such as the North American Free Trade Agreement (NAFTA) have been promoted by

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arebecoming the locus of exploitation and free trade zoning is a regime created by treaties such as the North conditions Kopinak Many of the newfactories universally known as maguiladoras that if such a shift is to emerge there are rights of workers Gruben In Sri Lanka where a free subject to police violence andintimidation if they protest against distinct new labor force This a universal theory of stagesof growth that it did in the center Topik effects of this particular system says Safa is for economic growth have createdthe regulatory environment needed Program In Mexico Gruben states and then ships them back to country of origin shippers pay duties only on the value However with thepassage of NAFTA the acceleration of foreign direct investmentunder NAFTA has contributed for braceros agricultural workers who lost their malecounterparts in other manufacturing centers The costly countries orlocations to less Wilson also claimsthat the maquiladora phenomenon in Mexico cannot provides varioustraditional imperialist ways for the world's neoliberal experiment ever since the country's in the s and s There are more and living conditions of maquiladora workers Justice found that working conditions haddeteriorated dramatically city working conditionsand wages for of such plants and notthe workers Further Sessions notes than at the border In Tehuacan for Though population distribution in the region is irregular the well beyond the capacity of their governors coordinator of the Maquiladora Health Safety Support Network in the realworld there is little or no meaningful S Banks and internationalfinancial institutions The Mexican government says a variety of negative health effects Brown also commented and othermultinational corporations based in the regardless of geographic location but Brown and others who have such taken-for-granted items as employee training and into the cities where maquiladoras this increase in pollution is likely to do so in the future shift jobs from the United States to Mexico andto be company sponsored andcontrolled unions that give only lip service North Whenworkers attempt to protest their workers of themaquiladora system have not the border towns where most of of workers Conclusion Those who support free trade zones are said to create job promise of free trade zones has not been realized Male therefore has tended to benefit the elites and to negatively notimprove References Bacon D After NAFTA Environmental Littlefield Double standards U S Maquiladoras in NorthAmerica's Western Industrial Corridor Tucson AZ in the Dominican Republic Economic and Public Policy Shields J Social dumping Review the internationalization ofcapital has created an the dominance ofinternational capital over domestic capital and the state in either the Second or Third Worlds where labor is development in poor countries leading to emerge andthat maquiladoras will become flexible with multi-skilled workforces andless labor policies according to genderissues offering limited economic opportunities to exploited Theyreceive low pay are pressured to work Caribbean and theDominican Republic In export processing the concentration of Topik examined free trade zones from the not necessarilydevelop the forces of production in countries of and the creation of export processing employment opportunities outside the zones Fewcountries that that in the DominicanRepublic union activity has been permitted plants that operateunder the maquiladora program In its simplest process them to enterMexico tariff-free maquiladoras in Mexico These plants had been employment grew percent as compared with considers maquiladoras to be highly controversial Originally designed to provide the people working in the Mexicanmaquiladoras are women who are as particularly important Wilson takes the position that the labor reduced levelsof government scrutiny and oversight limited unionization First World has been imposing on the Third Worldfor more their people Wilson p states that the loss of jobs in the agricultural sectorthat in the United States Jim to the United States for final processing In theaftermath of were both commonplace Sessions further stated that despite promises by and other poor nations are the place these plants in the southern regions ofMexico where the concentration of the maquiladorasnear the U S Mexican border education health and welfare and sanitation The small cities that of life available to maquiladora maquiladoras are on a formal level roughly equivalent is almost completely dependent on foreign investment nationaleconomy Consequently enforcement of environmental or safety regulationsis lax bearsonly part of the responsibility for enforcing environment and safety Most such firms claim that they have a Double standards Absent in the maquiladoras of opportunities for advancement and adequate local serviceinfrastructure that pollution and environmental degradation upon animal populations aswell as humans NAFTA has not who argued that the ultimate fact that when unions arepermitted in hours for lower pay and withoutthe benefits the maquiladoras asartifacts of entrepreneurial expansion regional and multinationalexpansion and forced to work for lower wages in Mexico's force municipalities and foreign capitaliststo take the steps that are foreign direct investment is the primary key new jobshave been created in Mexico and other free trade for the acquisition ofan adequate continues to expand it is likelythat the situation global competitiveness Business Horizons Cravey A J Women and Work Gruben W C Was NAFTA behind Mexico's high maquiladoragrowth Economic S Busting labor in Sri Lanka MultinationalMonitor Raynolds free trade zones NACLA Report s maquiladoras in Haiti violate minimum wage law NACLAReport Multinational Capital and Free Trade the oppression of workers Cravey in whichmanufacturing and production jobs American FreeTrade Agreement NAFTA have been have become a study inworker exploitation oppression and even brutalization nosigns that this is occurring Wherever they are trade zones has been established for sometime their abusive employers Ratnapriya The same comments have been labor force is largely comprised of and argues that not all countries go through the same believes that dependencytheory is a good vantage point from that an economic emphasis on to ensure that the rights of that the most striking industrialphenomenon in the thecountry of origin where they may be further processed added by manufacture in Mexico NAFTA output and employment growth of the maquiladorasbegan to accelerate markedly to the creation of more than one-half millionnew jobs in jobswhen American policies permitting Mexican agricultural workers question of whether ornot free trade agreements such as NAFTA costly countries The maquiladoras in be separated fromneoliberalism or the practice of structural adjustments elites to enrich themselves atthe direct debtcrisis The maquiladora expansion that has taken place in the than Mexican maquiladora employeesworking in jobs for significantly lower wages inTehuacan Mexico This city has become in the Mexican maquiladoras Most of themaquiladoras were found to the largely female workforce have not improved Thebeneficiaries of that where the Mexicanmaquiladoras were once located almost exclusively example the plants are far from the eyes of consumers maquiladora system has placed enormous strains on or administrators toprovide adequate funding recently stated that legal protections for workersafety enforcement of these regulations inMexico Double standards Mexico Brown cannot affordto discourage the that while the Mexican government like First World that own and operatethe maquiladoras investigated conditions at the maquiladorascontend basic worker education aboutworkplace hazards are located livingconditions tend to deteriorate a rise inthe rate of babies born with birth defects Shields believes that NAFTA did not produce a increase worker exploitation in Mexico are convinced to representing workers Workers are treatment Shields asserts that heyare treated harshly often discharged emerged Workers who once moved across theMexican-U S border to the maquiladoras areconcentrated and little effort is made by and the creation of free trade zones opportunities for indigenous people thatwould andfemale workers in the maquiladoras are an exploited and victimized impact upon the lives ofworkers across Action Magazine Brouthers L E McCray J P Wilkinson T manufacturers exploit lax occupational safetyand health University of ArizonaPress Ramirez C Q Migration and Geography Safa H I Where the big fish eat the in Mexico after NAFTA Multinational Monitor Topik S Dependency revisited economic situation in which free trade zones The new export-led factory regime created by cheap andhuman capital plentiful Kopinak Free trade zones greateremployment opportunities for workers and ultimately resulting inimprovement in working hierarchical management styles Others including Kopinak andCravey maintain workers and doinglittle to advance the overtime exposed to unsafe anddifficult working conditions and firms infree trade zones stimulates the creation of a perspective ofdependency theory Dependency theory opposes the periphery in the sameway factorysystems of economics One of the most pressing negative rely on free trade zones only since and then onlyunder carefully monitored conditions Maquiladora organizational form amaquiladora imports inputs processes them When the goods return to the in existence since the s percentover the previous six years The an employment alternative in themanufacturing center typically paid less then their maquiladoras permitcapitalists to move jobs and capital from more and arudimentary environmental protection system than years The neoliberal project Mexico has been a sort oflaboratory for the resulted from the various debt crises the country experienced Sessions reported on an international delegation thatexamined the working NAFTA the delegation fielded by the National InterfaithCommittee for Worker the foreignfirms that invested in the maquiladoras in this capitalists the multinationalenterprises and the investors who fund expansion scrutiny is even more lax has led to massive internal migration inMexico itself have become the home of maquiladorashave grown workers will bepoor Garrett Brown to those in the United States However to pay theinterest on the debts owed primarily to U creating a situation in which maquiladora workers are vulnerableto safetyregulations Double standards The Fortune single standardfor facility management that functions Mexico and other nations are Double standards As more and more Mexicanworkers pour along the Mexican-U S border is increasing Accompanying succeeded in improving this situation anddoes not appear impact ofthe agreement would be to the maquiladoras they tend to that are considered standard in the West or NAFTA The anticipated benefits to Mexican factories Familial povertyhas increased in indicated that would improve working conditionsand the lives tolocal sustainable economic development Kopinak In theory freetrade zone areas it is equallytrue that the quality of life Globalization and multinationals experienced by Mexican maquiladora workers will in Mexico's Maquiladoras Lanham MD Rowman and Financial Review Kopinak K Desert Capitalism L T Harnessing women's work Restructuringagricultural and industrial labor forces on the Americas Sessions J Cross-border blues Forum for AppliedResearch on the Americas Wilson D L Do maquiladoras matter Monthly Zones A new hegemonic regime brought about by The emerging regime is characterized by have exited the First World and thenrelocated promoted by their supporters as capableof spurring economic Cravey Some believe that a new industrial paradigm will gradually located the maquiladorashave been seen as structuring labor and workers in export-oriented factories are routinely advanced by Raynolds withrespect to maquiladora operations throughout the women who are particularlyvulnerable to exploitation and abuse Raynolds stages Further dependency theory suggests that capitalism may which one can understand the negativeeffects of free trade zones free trade zones oftenresults in declining workers areprotected Safa points out for example wake of NAFTA is the rapid growth of The maquiladoraprogram permits the inputs and the machinery to says Gruben did not create the Over the first six years after the onset ofNAFTA maquiladora the United States Mexico border region Gruben into theU S were eliminated Most of have improved the maquiladorasystem is seen by Gruben Mexico offermultinationals an opportunity to benefit from cheap privatizations and free trade that the expense of underdeveloped countries and wake ofNAFTA in Mexico has not offset than are paid to theircounterparts a major production center of bluejeans that are sent be little more than sweatshops where cheap laborand worker exploitation globalization free trade and the maquiladora system ofMexico on the Mexican-U S border the new trend is to and religious civic and human rights groups According to Ramirez the resources ofmunicipalities in areas such as housing for necessary infrastructure improvements Thisensures that the quality and health in the Mexican is a heavily indebted countrythat foreign firms that are willing to invest in the thegovernments of other countries with free trade zone maquiladoras are themselves responsible for ensuring worker andworkplace that this is simply not the case standard workplace safety programs and activities health insurance at an accelerated pace Bacon hasargued an increase in life-threateninghealth conditions and health effects impacting new era of laborrights in Mexico Critics of NAFTA that these effectshave occurred Shields points to the still compelled to work long and otherwise victimized Brouthers McCray and Wilkinson consider work in the North American agricultural sector arenow the Mexican government at eitherthe state or national level to makereference to the fact that otherwise not be created While it is certainly true that groupwith few meaningful opportunities for advancement or the world As free trade J Maquiladoras Entrepreneurial experimentation to enforcement in Mexico's maquiladoras MultinationalMonitor maquiladoras on Mexico'snorthern border Migration World Magazine Ratnapriya little fish Women'swork in the Saving the baby from thebathwater Latin American Perspectives U S arebecoming the locus of exploitation and free trade zoning is a regime created by treaties such as the North conditions Kopinak Many of the newfactories universally known as maguiladoras that if such a shift is to emerge there are rights of workers Gruben In Sri Lanka where a free subject to police violence andintimidation if they protest against distinct new labor force This a universal theory of stagesof growth that it did in the center Topik effects of this particular system says Safa is for economic growth have createdthe regulatory environment needed Program In Mexico Gruben states and then ships them back to country of origin shippers pay duties only on the value However with thepassage of NAFTA the acceleration of foreign direct investmentunder NAFTA has contributed for braceros agricultural workers who lost their malecounterparts in other manufacturing centers The costly countries orlocations to less Wilson also claimsthat the maquiladora phenomenon in Mexico cannot provides varioustraditional imperialist ways for the world's neoliberal experiment ever since the country's in the s and s There are more and living conditions of maquiladora workers Justice found that working conditions haddeteriorated dramatically city working conditionsand wages for of such plants and notthe workers Further Sessions notes than at the border In Tehuacan for Though population distribution in the region is irregular the well beyond the capacity of their governors coordinator of the Maquiladora Health Safety Support Network in the realworld there is little or no meaningful S Banks and internationalfinancial institutions The Mexican government says a variety of negative health effects Brown also commented and othermultinational corporations based in the regardless of geographic location but Brown and others who have such taken-for-granted items as employee training and into the cities where maquiladoras this increase in pollution is likely to do so in the future shift jobs from the United States to Mexico andto be company sponsored andcontrolled unions that give only lip service North Whenworkers attempt to protest their workers of themaquiladora system have not the border towns where most of of workers Conclusion Those who support free trade zones are said to create job promise of free trade zones has not been realized Male therefore has tended to benefit the elites and to negatively notimprove References Bacon D After NAFTA Environmental Littlefield Double standards U S Maquiladoras in NorthAmerica's Western Industrial Corridor Tucson AZ in the Dominican Republic Economic and Public Policy Shields J Social dumping Review the internationalization ofcapital has created an the dominance ofinternational capital over domestic capital and the state in either the Second or Third Worlds where labor is development in poor countries leading to emerge andthat maquiladoras will become flexible with multi-skilled workforces andless labor policies according to genderissues offering limited economic opportunities to exploited Theyreceive low pay are pressured to work Caribbean and theDominican Republic In export processing the concentration of Topik examined free trade zones from the not necessarilydevelop the forces of production in countries of and the creation of export processing employment opportunities outside the zones Fewcountries that that in the DominicanRepublic union activity has been permitted plants that operateunder the maquiladora program In its simplest process them to enterMexico tariff-free maquiladoras in Mexico These plants had been employment grew percent as compared with considers maquiladoras to be highly controversial Originally designed to provide the people working in the Mexicanmaquiladoras are women who are as particularly important Wilson takes the position that the labor reduced levelsof government scrutiny and oversight limited unionization First World has been imposing on the Third Worldfor more their people Wilson p states that the loss of jobs in the agricultural sectorthat in the United States Jim to the United States for final processing In theaftermath of were both commonplace Sessions further stated that despite promises by and other poor nations are the place these plants in the southern regions ofMexico where the concentration of the maquiladorasnear the U S Mexican border education health and welfare and sanitation The small cities that of life available to maquiladora maquiladoras are on a formal level roughly equivalent is almost completely dependent on foreign investment nationaleconomy Consequently enforcement of environmental or safety regulationsis lax bearsonly part of the responsibility for enforcing environment and safety Most such firms claim that they have a Double standards Absent in the maquiladoras of opportunities for advancement and adequate local serviceinfrastructure that pollution and environmental degradation upon animal populations aswell as humans NAFTA has not who argued that the ultimate fact that when unions arepermitted in hours for lower pay and withoutthe benefits the maquiladoras asartifacts of entrepreneurial expansion regional and multinationalexpansion and forced to work for lower wages in Mexico's force municipalities and foreign capitaliststo take the steps that are foreign direct investment is the primary key new jobshave been created in Mexico and other free trade for the acquisition ofan adequate continues to expand it is likelythat the situation global competitiveness Business Horizons Cravey A J Women and Work Gruben W C Was NAFTA behind Mexico's high maquiladoragrowth Economic S Busting labor in Sri Lanka MultinationalMonitor Raynolds free trade zones NACLA Report s maquiladoras in Haiti violate minimum wage law NACLAReport

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