The presentation at University of Toronto talks about the rise and fall of Maquilladoras on the Mexican side of the U.S. - Mexico border twin cities. The Maquilladoras are a result of NAFTA agreement. US and European companies essentially exploit the cheap labor in Mexico similarly to FDI (foreign direct investment) strategies. The only value added on the price of the products assembled in Mexico is the labor cost. In early 2000s the Maquilladoras could not compete with even cheaper labor in Asia and companies relocated their assemblies there. These days the presentation says we are seeing a reversal of the trend with higher shipping prices.
Hallelujah.
zero oil will save us one day.
source:
Juan Robles
http://infranetlab.org/blog/border-economies-maquiladora-export-landscape
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